• Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

Card Range To Study

through

image

Play button

image

Play button

image

Progress

1/7

Click to flip

Use LEFT and RIGHT arrow keys to navigate between flashcards;

Use UP and DOWN arrow keys to flip the card;

H to show hint;

A reads text to speech;

7 Cards in this Set

  • Front
  • Back

Assets - Definition

1) Ressource


2) Expected to provide future economic benefits

Assets - An asset is recognized when

1) Acquired in a past transaction or exchange


2) Value can be measured with reasonable degree of precision

Liabilities - Definition

1) Claim on assets by "creditors" (non-owners)


2) Represents an obligation to make future payment of cash, goods or services

Liabilities - Recognized when

1) Based on benefits or services received currently or in the past


2) Amount and timing of payment is reasonably certain

Stockholders' Equity - Definition

Residual claim on assets after settling claims of creditors (= Assets - Liabilities)


Also known as:


- Net worth


- Net assets


- Net book value

Sources of Stockholders' Equity

1) Contributed Capital (arises from sale of shares)


2) Retained Earnings (arises from operations)

Dividends - Definition

Distribution of retained earnings to shareholders


Beware:


- Not an expense


- Recorded as a reduction of retained earnings on the declaration date