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15 Cards in this Set
- Front
- Back
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What are the four major financial statements?
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Income statement, statement of owner's equity, balance sheet, and cash flow statement
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What are revenues?
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Are the value of asses exchanged for products and services provided to customers.
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What are assets?
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Economic resources held by a business.
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What are expenses?
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The costs incurred or the using up of assets from generating revenue
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What are the Income statement heading identifiers?
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The Business Name
Income Statement The Time Period Covered |
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What is the statement of owner's equity?
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Total Assets - Total liabilities
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What does S of O E represent?
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How much of the assets belong to the owner. i.e. the owner's claim on the assets of a company
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What causes owner's equity to increase?
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Owner's investments and Net Income
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What causes owner's equity to decrease?
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Owner withdrawals and Net Loss
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What are owner investments?
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When the owner transfers personal assets into the business
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What are owner withdrawals?
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Occur when the owner takes cash or other assets from the business. Represent a distribution of net income to the owner.
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What does the S of O E report?
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Reports on the changes in equity over the reporting period.
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What does the Balance Sheet report?
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The financial position of a business at a point in time (usually at the end of a month or year)
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What does it list?
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The types and dollar amounts of assets, liabilities, and equity.
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What are GAAP?
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Rules that make up acceptable accounting practices.
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