Term
| The _______ ________ indicates the financial position of the firm at a particular point in time. |
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Definition
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Term
| Balance sheet illustrates the basic ________ _______ on a specific date. |
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Definition
| accounting equation (assets = liabilities + stockholders equity) |
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Term
| Most firms have interim accounting periods, often ________ for internal information purposes and ________for external reports. |
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Term
| A firm ends its year at the end of its financial or ______ ________. |
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Term
T/F
A firm may pick a fiscal year-end that is different from the calendar year. |
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Definition
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| Factor for picking a fiscal year-end. |
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Definition
Firm's inventory cycle.
how busy the accounting and bookkeeping staff is at different times of the year.
find a time when accounting functions are at a slow point. |
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Term
| ________ assets are cash or will become cash or be used up within a year. |
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Definition
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Term
| _______ liabilities are obligations that must be pais within a year. |
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Definition
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Term
| Long term assets are broken into several groupings. |
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Definition
Fixed assets (sometimes referred to as capital facilities) represent the firm's property, plant, and equipment.
Investments are primarily securities purchased with the intent to hold on to them as a long-term investment. |
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Term
| A firm also has obligations due more than a year from the balance sheet date. These are termed _____ ______ _______. |
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Definition
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Term
| Stockholders' equity consists of ________ ______ and _______ ________. |
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Definition
| Contributed capital and retained earnings. |
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Term
| __________ capital represents the amounts that indviduals have paid directly to the firm in exchange for shars of ownership such as common or preferred stock. |
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Definition
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Term
| ________ earnings represent the portion of the income that the firm has earned over the years that has not been distributed to the owners in the form of dividends. |
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Definition
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Term
| Retained earnings represent a clam on a portion of the firm's assets (such as ________ and ________) and are not an asset themselves. |
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Definition
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Term
| The ________ _______ compares the firm's revenues to its expenses. |
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Definition
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Term
| ________ are the mones the firm has received or is entitled to receive in exchange for goods and services. |
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Definition
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Term
| _________ are costs incurred in order to generate revenues. |
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Definition
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Term
| _____ ________ is the difference between revenues and exenses. |
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Term
| The _______ _______ statement provides information about the firm's cash inflows and outflows. |
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Definition
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Term
| ________ Accounting: record revenue when cash is received from customers and expenses when cash is paid to acquire resources. |
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Definition
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Term
| ______ Accounting: record revenue when goods or services have been provided and the organization is entitled to be paid; record expenses in the same period as the revenues they help to generate (matching) |
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Definition
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Term
| ________ provides a better understanding of how profitable the organizations activites are, and is les subject to manipulation. |
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Definition
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