Flashcards
Bus 20 ch1
Cards in this deck (21)
- 1Net Income(equation)NE = Revenue - expenses
- 2Basic accounting equationassets=liabilities + s.e
- 3What the company owns must be equal to..what it owes to creditors and stockholders
- 4Asseteconomic resource that increases cash inflow or decreases cash outflow. like cash, supplies, equipment
- 5Liabilitieswhat a company owes to its creditors
- 6note payablenote indicating that you owe money to a bank
- 7accountpayablemoney owed to a vendor or supplier
- 8stockholders equityrepresents owners claims to the bus
- 9common stockequity paid in by stockholders
- 10retained earningsequity earned by company
- 11revenues are earned and measured..earned: selling goods/services
measured: at the amount product was sold for - 12expenses are used togenerate revenue
- 13everything about dividendsamount distributed from dividing r.e
not expense
lowers r.e
lowers s.e - 14accountsindividual types of expenses and revenues
- 15statement of retained earningsdemonstrates the way net income and dividends affected the financial position of the company
- 16balance sheetreports the essential finacial equation items.
a, l, s.e - 17statement of cash flowsreports the fin, invest, op activities that decreased or increased cash during a period
- 18operating activitiesactivies related to the bus to earn a profit. selling goods, paying wages, paying insurance, renting a building
- 19investing activitiesbuying and selling productive resources with long lives: buildings, land, software
- 20financing activiestaking loans, paying loans, issuing stock
- 21cash in balance sheet is equal to cash amount at the end of cash flow statement.
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- Business/Economics Flashcards on Bus 20 ch1, created by Marcos Leandro on 17/04/2018.
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- Marcos Leandro
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