Term
| First Section on Balance Sheet |
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Definition
Current Assets. Ex:
Cash/Petty Cash
A/R
Allowance for Doubtful Accounts
Notes and Interest Receivable
Inventory
Supplies
Prepaid Rent/Insurance
Other Assets |
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Term
| Second Section of Balance Sheet |
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Definition
Long Term Assets. Ex:
Land
Buildings
Trucks
Equipment
Include the subtraction of depreciation when necessary |
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Term
| Third Section of Balance Sheet |
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Definition
Current Liabilities - Short Term. Ex:
Notes Pay.
Accounts Pay.
Salaries and Wages Pay.
All of the taxes (FICA, Income, Federal, etc.) Payable.
Interest Pay.
Dividends Pay.
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Term
| Fourth Section of Balance Sheet |
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Definition
Long-Term Liabilities
Notes Pay.
Bonds Pay.
Include the subtraction of discounts on Bonds Pay. when applicable.
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Term
| Fifth Part of Balance Sheet |
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Definition
Stockholders Equity. Ex:
Common Stock
Paid in Capital in excess of State Value
Retained Earnings
Less: Treasury Stock
Total: Stockholders equity |
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Term
| Two Totals from a Balance Sheet |
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Definition
Total Assets
Total Liabilities and Stockholders Equity |
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Term
| First Section of Income Statement |
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Definition
Sales Revenue. Less:Sales discounts, returns and allowances
Total is called Net sales
Subtract Cost of Goods Sold from Net sales to calculate for gross profit |
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Term
| Second Section of Income Statement |
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Definition
Selling Expenses:
Advertising
Supplies
Freight out
Miscellaneous
Salaries and Wages
Payroll Tax expense |
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Term
Third Section of Income Statement
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Definition
Administrative Expenses:
Bad Debt
Depreciation
Insurance
Rent
Utilities
Subtract total of the expenses from Gross Profit to get Income from Operations |
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Term
| Fourth Section of Income Statement |
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Definition
Other Revenue and Gains
Interest and Revenue
Other Expense and Losses
Interest Expense
Loss on Disposal of Plant Asset |
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