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15 Cards in this Set
- Front
- Back
Balance Sheet
(sometimes called the statement of financial position) |
A listing of the organizations assets, liabilities, and owners equity at a point in time.
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Accounting Equation
or Balance Sheet Equation |
Assets = Liabilities + Owners' Equity
($320 = $117 + 203) |
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Assets
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The amount of resources owned by the entity.
(cash, merchandise inventory, or equipment) |
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Liabilities
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Amounts owed to other entities.
(accounts payable) |
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Owners' Equity
(sometimes referred to as net assets or net worth) |
The ownership right of owners of the entity in the assets that remain after deducting liabilities.
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Cash
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Cash on hand and in the bank or banks used.
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Accounts Receibable
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Amounts due from customers who have purchased merchandise on credit and agreed to pay within a specified period
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Merchandise Inventory
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The cost to an entity of the merchandise that it has acquired buy not yet sold.
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Equipment
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The cost of all equipment used run the entity.
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Accumulated Depreciation
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The portion of the cost of equipment that is estimated to have been used up in the process of operating the business.
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Depreciation
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The process of spreading the cost of an asset over its useful life to the entity.
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Accounts Payable
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Amounts owed to suppliers of merchandise of merchandise inventory that was purchased on credit and will be paid within a specific period of time.
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Accrued Liabilities
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Amounts owed to various creditors, including any qages owed to employees for services provided.
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Short-Term Debt
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Amounts borrowed, probably from banks, that will be repaid within one year of the balance sheet date.
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Long-Term Debt
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Amounts borrowed from banks or others that will not be repaid within one year of the balance sheet date.
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