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15 Cards in this Set
- Front
- Back
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Accounting
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resports financial info to the user in a form useful for decision making.
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Finance
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uses accounting info for decision making.
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Balance Sheet
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Assets = Liabilities + Owner Equity
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Assets =
Where Found? |
= Current + Fixed
Balance Sheet |
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Current Assets
= & What are they? |
= Cash + Accounts Receivable + Inventory
Can convert to cash w/in (1) year. |
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Net Fixed Assets
= & What are they? |
= Land + Plant + Equipment - Accumulated Depreciation
no anticipation of converting to cash w/in (1) year. Used to run business. |
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Liabilities =
Where Found? |
= Current Liabilities + Long Term Debt
Balance Sheet |
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Current Liabilities =
Used in what formula? |
Accounts Payable + Accruals + Short Term Debt
Liability |
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Long Term Debt =
Used in what formula? |
= Bonds + LT Bank Debt + Mortgages
Liability |
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Owner's Equity =
Found on what Statement? |
Preferred Stock + Common Stock + Retained Earnings
Balance Sheet |
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Preferred Stock
Used in what Equation? |
Hybrid Securities
Owner's Equity |
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Common Stock
Where does this $ come from? Used in what Equation? |
Stock sold to the public,
$ initially raised goes in here Owner's Equity |
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Retained Earnings
Used in what Equation? |
Cummalative amount of reinvested profit over the life of the company.
Owner's Equity |
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Accounts Payable
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$$ borrowed from a supplier
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Accruals
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Services you have not yet paid for.
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