A201 Ch 2

Front 1

operating activities

Back 1

sales, receivables, inventory, payables

Front 2

investing activities

Back 2

buildings, equipment, land, knowledge

Front 3

financing activities

Back 3

debt payments, dividendes, equity

Front 4

liquidity

Back 4

how quickly a thing is converted into cash

Front 5

current assets

Back 5

cash, short-term investments, accts receivable, inventory, prepaid expenses

Front 6

short-term investments include

Back 6

stocks, bonds, other investments

Front 7

accts receivable

Back 7

amount of money company expects to collect from customers

Front 8

merchandise inventory

Back 8

items or products on hand a company intends to sell to customers

Front 9

prepaid expenses

Back 9

expenses that have been paid by a company before service is used

Front 10

long-term investments

Back 10

provide benefits beyond one year (notes receivable, land investments, debt/equity securities

Front 11

plant and equipment

Back 11

represent physical structures a company owns and uses in operations

Front 12

intangible assets

Back 12

no physical substance (legal rights)

Front 13

current liabilities

Back 13

paid with use of assets listen in current asset section (accts payable, wages payable, interest payable, short-term notes payable, income staxes payable)

Front 14

accts payable

Back 14

obligations to a company's suppliers for merchandise purchases made on account

Front 15

current maturities of long-term debts

Back 15

portions of long-term liabilities that are due in the current period

Front 16

long-term notes payable

Back 16

refer to loans over a year

Front 17

bonds payable

Back 17

notes that have been issued for cash to a large number of bondholders

Front 18

mortgage payable

Back 18

obligation secured by real estate and usually owed to financial institutions

Front 19

stockholders' equity

Back 19

divided into contributed capital and earned capital (retained earnings)

Front 20

contributed capital

Back 20

measure of assets that have been contributed directly to a company by its owners

Front 21

earned capital is composed of

Back 21

retained earnings and other accumulated comprehensive income

Front 22

retained earnings

Back 22

measure of the assets that have been generated through operating activities but not paid out to shareholders in dividends yet

Front 23

owners' equity

Back 23

equity on partnership's balance sheet, makes no distinction between contributed capital and retained earnings (separate accounts for each partner)

Front 24

non-current assets + current assets - current liabilities = _________

Back 24

non-current liabilities + shareholders' equity

Front 25

most common revenue acct?

Back 25

sales

Front 26

revenue acct that reflects a company providing a service instead of selling a product

Back 26

fees earned/sales revenue

Front 27

cost of goods sold (CoGS)

Back 27

original cost of inventory sold

Front 28

turnover is the same as _____

Back 28

revenue