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15 Cards in this Set
- Front
- Back
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Income Statement |
Statement of operations that reports revenues, expenses, and net income for a stated period of time
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Balance Sheet Equation |
Assets = Liabilities + Shareholder Equity |
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Balance Sheet
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Statement of financial position that reports dollar amounts of assets, liabilities, and shareholder equity at a specific point in time. |
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Statement of stockholder's equity |
Explains changes to common stock and retained earnings that occurred during the reporting period. |
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Statement of cash flows |
Reports inflows and outflows of cash for a stated period of time. |
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Income Statement Equation |
Revenues - Expenses = Net Income |
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Current Ratio |
Current Assets/Current Liabilities
Measure of liquidity |
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Balance Sheet Current Assets |
Cash, Cash Equivalents, Short term Investments, Inventory, Accounts Receivable, Prepaid Expenses, Notes Receivable |
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Balance Sheet Non-Current Assets |
Property, plant and equipment, long term notes receivable, intangibles |
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Balance Sheet Current Liabilities |
Accounts payable, notes payable, Unearned revenue, accrued expenses payable |
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Balance Sheet Shareholder Equity |
Common stock, additional paid in capital, retained earnings
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Balance Sheet Non current liability |
Long term notes payable |
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Statement of Cash Flows Investing Activities |
Purchasing stock in another company or non current assets for cash, selling stock or non current assets for cash, purchasing pp&e for cash, selling pp&e for cash, loans to others, receipts of loan principal (interest is an operating cash flow) |
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Statement of Cash Flows Financing Activities |
Issuing stock for cash, Borrowing cash from the bank, repaying loan to bank, repurchase of stock for cash, paying dividend |
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Revenue Realization Principle |
Recognize revenue when (1) delivery has occured, (2) there is persuasive evidence of an arrangement for customer payment, (3) the price is fixed or determinable, (4) collection is reasonably assured |
