Term
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Definition
Current liability
Balance sheet |
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Term
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Definition
Current asset
Balance sheet |
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Term
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Definition
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Term
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Definition
Operating expense
Income statement |
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Term
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Definition
Long term liability
Balance sheet |
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Term
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Definition
Fixed asset
Balance sheet |
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Term
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Definition
Stockholder's equity
Balance sheet |
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Term
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Definition
Current asset
Balance sheet |
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Term
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Definition
Stockholders' equity
Retained earnings statement |
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Term
| Cost of merchandise (goods) sold |
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Definition
Cost of merchandise
Income statement |
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Term
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Definition
Operating expense
Income statement |
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Term
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Definition
Operating expense
Income statement |
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Term
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Definition
Operating expense
Income statement |
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Term
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Definition
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Term
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Definition
Stockholders' equity
Balance sheet/Retained earning statement |
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Term
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Definition
Current asset
Balance sheet |
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Term
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Definition
Current asset
Balance sheet |
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Term
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Definition
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Term
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Definition
Current liability
Balance sheet |
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Term
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Definition
Intangible asset
Balance sheet |
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Term
| Investment in bonds/stocks/subsidiaries |
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Definition
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Term
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Definition
Revenue from sales
Income statement |
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Term
| Income statement includes |
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Definition
| Fees earned - operating expenses (listed) = net income |
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Term
| Retained earnings statement |
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Definition
| retained earnings + net income - dividends = current retained earnings |
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Term
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Definition
| Assets = Liabilities + Stockholder's Equity (Capital Stock and Retained Earnings) |
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Term
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Definition
Cash flow from operating activities (cash received from customers - cash used for expenses)
Cash flows from investing activities (acquisition of land, equipment, etc)
Cash flows from financing activities (sale of stock, from notes payable, minus dividends)
Net increase in cash |
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Term
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Definition
| Expenses paid in advance but not yet incurred. Deferred expenses are in fact an asset because it stands as prepaid expenses. (Prepaid insurance, prepaid advertising, supplies) |
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Term
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Definition
| Expenses already incurred but still unpaid. Accrued expenses are in fact a liability because it stands as unpaid expenses. (Accrued interest on notes payable, accrued utility expenses and taxes) |
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Term
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Definition
| Revenues that have been earned but have not been recorded in the accounts. (Fees for services provided but not billed to the client at end of period) |
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Term
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Definition
| Revenue is recognized after cash is paid. (Tuition received in advance from a school. Subscription fees received in advance by magazine.) |
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