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15 Cards in this Set

  • Front
  • Back
What are the four major financial statements?
Income statement, statement of owner's equity, balance sheet, and cash flow statement
What are revenues?
Are the value of asses exchanged for products and services provided to customers.
What are assets?
Economic resources held by a business.
What are expenses?
The costs incurred or the using up of assets from generating revenue
What are the Income statement heading identifiers?
The Business Name
Income Statement
The Time Period Covered
What is the statement of owner's equity?
Total Assets - Total liabilities
What does S of O E represent?
How much of the assets belong to the owner. i.e. the owner's claim on the assets of a company
What causes owner's equity to increase?
Owner's investments and Net Income
What causes owner's equity to decrease?
Owner withdrawals and Net Loss
What are owner investments?
When the owner transfers personal assets into the business
What are owner withdrawals?
Occur when the owner takes cash or other assets from the business. Represent a distribution of net income to the owner.
What does the S of O E report?
Reports on the changes in equity over the reporting period.
What does the Balance Sheet report?
The financial position of a business at a point in time (usually at the end of a month or year)
What does it list?
The types and dollar amounts of assets, liabilities, and equity.
What are GAAP?
Rules that make up acceptable accounting practices.