Term
| financial position of a company is shown by lisitng what? -3 |
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Definition
| assets, liabilities, and owner's equity |
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Term
| primary financial statement for a business? in pharamcy what do we prefer? |
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Definition
balance sheet
income statement |
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Term
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Definition
| assets= liabilities + owner's equity |
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Term
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Definition
| economic resources owned by business |
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Term
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Definition
| something that will be sold/consumed/converted to cash within one business cycle |
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Term
current assets on a balance sheet (put in correct order) - 5
-why are they in this specific order? |
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Definition
Cash
accounts recievable
inventories
short term investments
prepaid expenses;
-based on most liquidity |
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Term
| accounts receivable includes 3rd parties and? |
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Definition
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Term
| which inventory type shows as an expense on the income statementt? |
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Definition
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Term
| what are the two types of inventory? |
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Definition
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Term
what is a non current asset?
what are the 5 examples? |
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Definition
not sold/converted to cash within one cycle or 1 year- used for use in business, have high cost, last several years
land, building, fixtures, cars, computers |
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Term
| what is the definition of liability |
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Definition
| amounts owed to someone other than owners |
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Term
| examples of current liabilites- 5 |
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Definition
accounts payable
short term notes payable
accrued expenses
tax
current part of long term debt |
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Term
| non current liabilities - 2 |
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Definition
loan payable over 5 years
mortgage |
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Term
| owner's equity is the claim against the business by? -3 |
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Definition
| sole proprietor, partner, stockholders |
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Term
| owner's equity increases through- |
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Definition
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Term
| which section brings the link btwn balance sheet and income statement? |
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Definition
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Term
| what is the income statement equation |
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Definition
(total sales- cost of goods sold)/
(gross margin -Operating expenses)=
Net margin |
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Term
| prep of a financial statement begins with? |
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Definition
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Term
| the most common system to process trnasactions is - ( total of 2 things) |
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Definition
general journal
+
ledger of accounts |
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Term
| each business transaction in the pahramcy is initially recorded into? |
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Definition
| book of original entry/ journal |
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Term
| a general journal provides a place for recording what of a transaction- 5 |
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Definition
date
name of account
explanation of transaction
account number
debit and credit effect is names |
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Term
| an entry for a transaction in a journal provides room for - 4 things |
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Definition
date
debit
credit
source document |
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Term
| copying journal entry info and trnasfering to a ledger is called? |
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Definition
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Term
| an account is shaped like? |
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Definition
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Term
| what are the parts of an account |
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Definition
title
left side=debit
right side=credit |
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Term
journalizing trnasactiona dn posting into ledgers is based on a system called?
why? |
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Definition
double entry system of accounting
-equal debit and credit entries are made |
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Term
Debit vs credit:
-whcih is on the left side? |
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Definition
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Term
for liabilites
-which means a decrease: debit or credit? |
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Definition
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Term
Debit vs credit:
which is always negative? |
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Definition
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Term
for assets/expense:
which means an increase- debit or credit |
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Definition
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Term
for owner's equity
-which means a decrease" debit or credit? |
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Definition
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Term
| owner's equity consists of 4 things in debit and credit T account: |
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Definition
capital
withdrawlas
revenue (sales)
expenses |
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Term
| an increase in capital is accounted as a debit or credit |
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Definition
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Term
| an increase in withdrawals is accounted as a debit or credit |
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Definition
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Term
increase in revenues are accounted as debit or credit?
what about an increase in expenses? |
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Definition
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Term
| each transaction will affect at least _ account(s) |
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Definition
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