Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key


Play button


Play button




Click to flip

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