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;
11 Cards in this Set
- Front
- Back
|
3 types of business |
1. sole proprietorship: one owner, easy to set up 2. partnership: 2+ owners, more resources --> disadvantage to both of these: personal liability (collateral) 3. corporation: separate legal entity, easier to raise funds, easy to transfer ownership (stocks), NO PERSONAL LIABILITY --> disadvantage: taxes, gov regulations |
|
|
2 users of financial info |
1. external: creditors (banks), IRS, SEC 2. Managers: CEO, CFO, etc. |
|
|
3 business activities |
1. financing activities: raising capital; debt//equity 2. investing activities: buying and selling assets; land, building, equipment 3. operating activities: day to day, primary business activity |
|
|
revenues |
generated from sales or service |
|
|
expenses |
cost of doing business, or assets consumed ex: (accounts) -salaries expense -utilities expense -rent expense |
|
|
financial statements |
Want: revenues>expenses=net income But if: revenues |
|
|
4 financial statements |
1. income statement: revenue-expenses=net income 2. statement of retained earnings: (+) add: net income (-) less: dividends = ending retained earnings 3. balance sheet: basic accounting equation: assets =liabilities+stockholders equity 4. Statement of Cash Flows: operation, investing, financing |
|
|
Balance Sheet: |
Assets: cash, accounts recievable, inventory, supplies, equipment, etc. total assets___ Plant Property, Equipment: equipment, (less) accum. depreciation net PP&E: Total assets____ Liabilities: current: salary and wage payable, account payable total current liabilities____ Long Term Liabilites: notes payable total liab__ Equity: Common stock end RE: total liab and equity___ |
|
|
asset: |
resources by the business for future use |
|
|
liabilities |
obligations to be paid |
|
|
equity |
the value of shares issued by a company |
