Term
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Definition
| shows a firm's assets, liabilities, and owners equity (AOL) A=L+O |
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Term
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Definition
there are four different kinds of possible assets that can be included on a balance sheet.
1. Cash
2.Accounts receivable -amt OWED to firm
3.inventory-merchandise to be sold
4. Equipment-enables business |
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Term
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Definition
defined as anything that the company owes: keywords are (debt, liability, and payable).
There are two main liabilities:
1. Accounts payable- what the company owns to someone ( credit card purchases)
2. Notes payable-more formal ( bank loan) |
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Term
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Definition
this refers to the owner's interest into the business. his/her's Overall contribution..includes:
1. Paid in capital-the amount of money initially invested in the company
2. Retained earnings-are the cumulative profits a company has reinvested in itself. |
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Term
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Definition
summarizes the earnings generated by firm during a specific period of time. Includes: revenues, expenses, and net income...
The formula is ( R-E=NI) |
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Term
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Definition
(R) inflow of assets from providing goods and services to customers
(sales) |
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Term
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Definition
expenses are the costs incurred to generate revenues.. There are three:
1. Cost of goods sold-the cost of the merchandise
2. General and/or administrative expenses: this includes salaries, rent, marketing and other items
3. Taxes-payments company has to make the IRS |
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Term
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Definition
the difference between revenues (R) and expenses(E).
(R-E) |
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Term
| statement of owners equity |
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Definition
summarizes the changes that took place in the owner's equity during a period under reveiw.
Includes capital, retained earnings, and total owner's equity through changes in time
the formula is (C+ (BEG RE,END RE)=total OE).. |
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Term
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Definition
| the amount that the owner initially invested in the company at the beginning of the year.. |
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Term
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Definition
the amount of earnings at the company retained over a period of time. For example the ending retained earnings of a 2009 statement of change will be the beginning of the 2010 retained earnings in the statement of change.
retained earnings can be calculated by inputting the net income (NI)aka-total)-(D)(dividends-aka paid back to owner)...
(NI)-(D)=Ending retained earnings |
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Term
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Definition
| the ending equity which is derived from the paid-in capital plus the ending retained earnings in a certain period of time |
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Term
| factors that impact financial results |
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Definition
| location, price, whether, recipe, advertising, purchases, and customer satisfaction |
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Term
Pop quiz
1.accounts payable
2.administrative expenses
3.paid-in capital
4.building
5.cash
6.COGS
7.accounts receivable
8.retained earnings
9.inventory
10.Notes payable
11.revenues |
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Definition
1.liability
2.expense
3.owners equity
4.asset
5.asset
6.expense
7.asset
8.owners equity
9.asset
10.liability
11.revenue |
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