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Definition
| Any event that affects the financial organization and requires recording. |
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| A business organized as a separate legal entity and owned by its stockholders. |
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Term
Balance Sheet (Statement of Financial Position/Condition) |
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Definition
A snapshot of the financial status of an organization at an instance in time. You can think of it as Assets = Equities. Measures financial performance at the end of the month.
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Term
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Definition
Economic resources that are expected to benefit future activities.
Also includes: Legal right to future services such as use of facilities.
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Term
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Definition
The claims against, or interests in, an organization's assets.
Equities = Liabilities + Owners' Equity
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Definition
| The entity's economic obligations to nonowners. |
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Definition
| The excess of the assets over the liabilities. |
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Definition
The owners' equity of a corporation.
Stockholder's Equity = (Paid-In Capital + Retained Earnings)
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Definition
| The ownership claim arising from funds paid-in by the owners. Start-up money for the company. |
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Retained Income (Retained Earnings)
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| The ownership claims arising from the reinvestment of previous profits. |
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Definition
| Amounts owed to vendors for purchases on open accounts. |
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Definition
| Amounts due from customers for sales on open account. |
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Definition
| The transformation of one asset (A/R) into another (cash). |
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Definition
| Increases in ownership claims arising from the delivery of goods or services. |
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Definition
| Decreases in ownership claims arising from delivering goods or services or using up assets. |
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Profits (Earnings, Income)
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Definition
| The excess of revenues over expenses. |
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Term
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Definition
| A statement that summarizes a company's revenues and expenses. It measures the performance of an organization by matching its accomplishments (revenue from customers, which is usually called sales) and the efforts (cost of goods sold and other expenses). Measures financial performance during the month. |
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Definition
Each item in a financial statement.
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Definition
| A process of accounting that recognizes the impact of transactions on the financial statements in the time periods when revenues and expenses occur instead of when cash is received or disbursed. |
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Definition
| A process of accounting where revenue and expense recognition would occur when cash received and disbursed. |
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Term
| Cash Collections (Cash Flow) |
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Definition
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