Shared Flashcard Set

Details

Balance Sheet
Balance Sheet Elements
21
Accounting
Undergraduate 2
03/28/2007

Additional Accounting Flashcards

 


 

Cards

Term
What is the balance sheet?
Definition
A position statement that presents an organized list of assets, liabilities and equity at a particular point in time.
Term
What is book value?
Definition
Assets minus liabilities as shown in the balance sheet.
Term
What is an operating cycle?
Definition
Period of time necessary to convert cash to raw materials, raw materials to finished product, the finished product to receivables, and then finally receivables back to cash.
Term
What are current assets?
Definition
Includes cash and all other assets expected to become cash or be consumed with in one year or the opration cycle, whichever is longer.
Term
What is a cash equilvalent?
Definition
They are highly liquid investments that can be quickly converted into cash with little risk of loss.
Term
What are short-term investments?
Definition
Investments not classified as cash equivalents that will be liquidated in the coming year or operating cycle, whichever is longer.
Term
What is accounts receivable?
Definition
Receivables resulting from the sale of goods or services on account.
Term
What are notes receivable?
Definition
Receivables supported by a formal agreement or note that specifies payment terms.
Term
What are prepaid expenses?
Definition
Represents an asset recordede when an expense is paid in advance, created benefits beyond the current period.
Term
What is property, plant and equipment?
Definition
Land, buildings, equipemtn, machinery, autos and trucks.
Term
What are inventories?
Definition
Goods awaiting sale (finished goods), goods in the course of production (work in process) and goods to be consumed directly or indirectly in production (raw materials).
Term
What are intangible assets?
Definition
Operational assets that lack physical substance: examples include patents, copyrights, franchises and goodwill.
Term
What is an operation asset?
Definition
Property, plant and equipment, along with intangible assets.
Term
What are other assets?
Definition
A catch-all classification of noncurrent assets on the balance sheet.
Term
What are accounts payable?
Definition
Obligations to suppliers of merchandise or of services purchased on open account.
Term
What are notes payable?
Definition
A promissory note (essentially an IOU) that obligates teh issuing corporation to repay a stated amount at or by a specified maturity date and to pay interest to the lenderbetween the issue date and maturity.
Term
What are unearned revenues?
Definition
Cash received from a customer in one period for goods or services that are to be provided in a future period.
Term
What are accrued liabilities?
Definition
Expenses already incurred but not yet paid (accrued expenses).
Term
What are current maturities of long-term debt?
Definition
The current installment due on long-term debt, reported as a current liability.
Term
What is paid-in capital?
Definition
Invested capital consisting primarily of amounts invested by shareholders when they purchase shares of stock from the corporation.
Term
What are retained earnings?
Definition
Amounts earned by the corporation on behalf of its shareholders and note (yet) distributed to them as dividends.
Supporting users have an ad free experience!