Term
|
Definition
| Issuing stock, paying dividends, borrowing money |
|
|
Term
|
Definition
| Buying the big ticket items needed to run a business, lending and other investing |
|
|
Term
|
Definition
| Everything that will run through the income statement, paying for supplies, interest income and interest expense |
|
|
Term
|
Definition
| Consists of owner investments by shareholders |
|
|
Term
|
Definition
| Recognize revenue when it is earned, even if you have not been paid |
|
|
Term
|
Definition
| Not an expense of the business, they are a reduction of retained earnings |
|
|
Term
|
Definition
| Net income/ average total assets |
|
|
Term
|
Definition
| Increase one asset, decrease another |
|
|
Term
|
Definition
| Decrease assets by decreasing claims |
|
|
Term
|
Definition
| Increase assets by increasing claims |
|
|
Term
|
Definition
| Debits increase expenses, assets, and dividends |
|
|
Term
|
Definition
| total liabilities/total assets: evaluates the level of debt risk, a higher ratio indicates that there is a greater probability that a company will NOT be able to pay it's bills in the future |
|
|
Term
|
Definition
|
|
Term
|
Definition
| liabilities + owner's equity |
|
|
Term
|
Definition
| increase one claim, decrease another |
|
|
Term
|
Definition
- cash(asset): increase
- common stock(equity): increase
- FA, asset source transaction |
|
|
Term
|
Definition
- cash(asset): decrease
- supplies(asset): increase
- OA, asset exchange |
|
|
Term
|
Definition
- cash(asset): decrease
- equipment(asset): increase
- IA, asset exchange |
|
|
Term
| Purchase Supplies on Credit |
|
Definition
- supplies(asset): increase
- accounts payable: increase
- OA, asset source |
|
|
Term
| Provide Services for Cash |
|
Definition
- cash(asset): increase
- revenues(NI): increase
- retained earnings: increase
- OA, asset use |
|
|
Term
|
Definition
- cash(asset): decrease
- expenses(equity): increase
- retained earnings: increase
- OA, asset use |
|
|
Term
|
Definition
- cash(asset): decrease
- retained earnings(equity): decrease
- FA, asset use
*no reduction in net income, only RE* |
|
|
Term
|
Definition
1. Income Statement
2. Statement of Retained Earnings
3. Balance Sheet
4. Statement of Cash Flows |
|
|
Term
|
Definition
- revenue, expenses, and net income
- summarizes the revenues, expenses, and results of operations for a specified period of time
- differences b/w the revenues and expenses is identified as net income or net loss |
|
|
Term
| Statement of Retained Earnings |
|
Definition
- discloses changes in retained earnings during a designated period of time
- Statement of Owners' Equity:common stock, retained earnings, dividends, and owners' equity |
|
|
Term
|
Definition
- states the economic resources owned by a company and the claims against those resources
- prepared as a specific date |
|
|
Term
|
Definition
| - reveals how cash is generated and expended during a specific time period |
|
|
Term
|
Definition
| net income/average total assets |
|
|
