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;
25 Cards in this Set
- Front
- Back
single owner
owner is personally liable for business typically a small business |
proprietorship
|
|
multiple owners
owners are personally liable for business typically a small to medium sized business |
partnership
|
|
multiple owners (stockholders)
owners are not personally liable for business may be any size, typically all large firms are these |
corporation
|
|
the process of measuring, summarizing, and reporting financial information about an economic entity
|
accounting
|
|
collecting and recording data on individual events
aggregating data into summary form issuing a written report for use by others |
measuring
summarizing reporting |
|
accounting reports are prepared using specific rules which are known as
|
generally accepted accounting principles
|
|
rules that guide the process of recording, summarizing, and reporting
|
generally accepted accounting principles
|
|
non-governmental entity funded by business community that issues financial accounting standards
|
financal accounting standards board (FASB)
|
|
financial statement that reports the firm's financial position as of a certain date
|
balance sheet
|
|
financial statement that shows the firm's resources (assets) and claims on resources (liabilities to creditors and owner's equity) as of a certain date
|
balance sheet
|
|
financial statement that reports the firm's results of operations for a certain period of time
|
income statement
|
|
financial statement that reports the firm's earnings (profit or loss) and the components of earnings for a certain period of time
|
income statement
|
|
financial statement that reports the causes of change in retained earnings for a certain period of time
|
statement of retained earnings
|
|
financial statement that reports the firm's cash inflows and outflows for a certain period of time
|
statement of cash flow
|
|
economic resources owned by the firm that are expected to benefit future time periods
|
assets
|
|
creditors claims on the economic resources owned by the firm (debt)
|
liabilities
|
|
owner's claims on the economic resources owned by the firm (capital)
|
stockholder's equity, also known as net assets
|
|
earnings of business not paid out in dividends
|
retained earnings
|
|
those assets and liabilities that will turn over quickly
|
current
|
|
any asset or liability not classified as current
|
noncurrent
|
|
the average time between acquisition of materials/supplies and the realization of cash from sales for which the materials/supplies were acquired
|
operating cycle (cash to cash)
|
|
cash and other assets expected to be converted to cash, sold, or consumed within one year or the operating cycle, whichever is longer
|
current assets
|
|
all debts due for payment within one year or the operating cycle, whichever is longer
|
current liabilities
|
|
assets = liabilities + stockholders' equity
|
balance sheet equation
|
|
formal heading of balance sheet
|
firm name
title of statement date of statement |