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12 Cards in this Set
- Front
- Back
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Two primary sources of outside funds are
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Borrowing money
Issuing shares of stock for cash. |
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liabilities
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Amounts owed
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creditors
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Party to whom amounts are owed
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dividends
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Payments to stockholders are called
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Investing Activities
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Purchase of resources a company needs to operate.
Computers, delivery trucks, furniture, buildings, etc. Resources owned by a business are called assets. |
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Revenues
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Amounts earned from the sale of products (sales revenue, service revenue, and interest revenue)
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Inventory
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Goods available for sale to customers
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Accounts receivable
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Right to receive money from a customer,in the future, as the result of a sale.
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Expenses
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cost of assets consumed or services used. (cost of goods sold, selling, marketing, administrative, interest, and income taxes expense).
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Liabilities
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arising from expenses include accounts payable, interest payable, wages payable, sales taxes payable, and income taxes payable.
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Net income
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when revenues exceed expenses.
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Net loss
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when expenses exceed revenues.
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