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Definition
any state that changes the resources of the firm
[financial event] |
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| basic fundamental accounting equation |
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Definition
assets = liabilities + owner's equityÂ
[own] cash-a/r-supplies--prepaid rent--equipment |
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Definition
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Definition
-what the business is worth
-what the owner has invested |
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Definition
| paying a bill in a certain amount of time |
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Definition
| amounts a business must pay in the future |
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Definition
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Definition
| firm's assets-liabilities-owner's equity in a financial statement |
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| fundamental accounting equation |
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Definition
| relationship between assets && liabilities plus owner's equity |
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Definition
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Definition
| outflow of money--use of other assets--incurring of a liablilty |
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Definition
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Definition
| funds taken from the business by the owner for personal use |
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Definition
| shows results of business operations [month-quarter-year] |
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Definition
| results when revenue is greater than the expenses for the period |
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Definition
| revenue && expenses are equal [rare] |
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Definition
| expenses are greater than revenue |
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| statement of owner's equity |
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Definition
| reports changes occurred in owner's financial interest [reporting period] |
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Definition
| current worth of an asset or price the asset would bring if sold on open market |
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