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27 Cards in this Set

  • Front
  • Back
a financial statement that identifies a company's assets and claims to those assets by creditors and owners at a specific date
balance sheet
an information system for the measurement and reporting of the transformation of resources into goods and services and the sale or transfer of these goods and services during a particular period
the difference between the price a seller receives for goods or services and the total cost to the seller of all resources consumed in developing, producing, and selling those goods or services during a particular period.
uncertainty about an outcome
the ratio of net income to total assets; net income divided by total assets
return on assets.
net income divided by stockholders equity
return on equity
the amount of profits earned by a business that could be paid to owners
return on investment
the process of preparing, reporting and interpreting accounting information that is provided to external decision makers.
financial accounting
the amount a company expects to receive when it sells goods or services
the amount of resources consumed in the process of acquiring and selling goods and services
a financial statement that reports revenues and expenses for a fiscal period as a means of determining how well a company has performed in creating profit for its owners
income statement
a subcategory of owners equity that is the accumulated profits of a business that have been reinvested in the business
retained earnings
a financial statement that reports events that affected a company's cash account during a fiscal period
statement of cash flows
a financial statement that reports changes in a corporations owners equity for a fiscal period
statement of stockholders equity
long term legal rights resulting form the ownership of patents, copyrights, and trademarks and similar items
intangible assets
an asset account that increases when goods are sold on credit
accounts recievable
a federal agency that was given responsibility for overseeing external financial reporting by publicly traded corporations
securities and exchange commission
a series of equal amounts received or paid over a specified number of equal time periods
the claim of a creditor to a company's resources
an owners equity account that identifies amounts contributed to a company by its owners; the direct investment made by stockholders in a corporation
contributed capital
the use of debt to increase a company's return on equity; total assets divided by total stockholders equity
financial leverage
resources that can be converted to cash in a relatively short period
the allocation of the cost of assets to the fiscal periods that benefit from the assets use
events that occur when owners or creditors provide resources to owners or creditors
financial activities
activities necessary to acquire and sell goods and services
operating activities
activities involving the acquisition or disposal of long term resources used by a business
investing activities
an expense that identifies the cost to the company of the goods transferred to customers
cost of goods sold