Flashcards
Accounting Fundamentals
Cards in this deck (19)
- 1Income StatementRevenues
Expenses
Profit or loss - 2Balance SheetAssets
Liabilities
Equity - 3Statement of Cash FlowsOperating
Investing
Financing - 4Balance Sheet EquationAssets = Liabilities + Equity
- 5AssetsWhat they own:
*Inventory, equipment, property
*Future economic benefit - 6LiabilitiesWhat they owe:
*Long-term loans, accounts payable
*Amounts owed to vendors, suppliers, customers, and creditors - 7EquityWhat is over:
*Shareholders equity
*Residual value - 8Equity IncreasesEquity goes up when issuing stock, generating revenues
- 9Equity DecreasesEquity goes down when increasing expenses, net losses, dividend
- 10Balance Sheet must alwayBalance
- 11Balance sheet uses a system calledDouble-entry accounting
- 12Asset AccountsCash
Accounts Receivable
Prepaid Insurance
Inventory
Capital Assets:
Vehicles
Equipment
Buildings
Land - 13Liabilities AccountsAccounts payable
Salaries payable
Unearned revenue
Notes payable - 14Liabilities AccountsAccounts payable
Salaries payable
Unearned revenue
Notes payable - 15Equity CR and DRRevenue--CR
Share Capital--CR
Expenses--DR
Dividends--DR - 16Issuing Shares for 100,000Current Assets:
Cash goes up 100,000 (DR)
Liabilities and Shareholder's Equity:
Shareholder's Equity:Common Stock goes up 100,000 (CR) - 17Issuing Shares Example pic
- 18Taking out a 4 year bank loanAssets:
Current Assets:Cash goes up 50,000 (DR) to equal 150,000 (100,000+50,000)
Liabilities & Shareholder's Equity:
Non-Current liabliities:Loan payable up 50,000 (CR) - 194 year bank loan example
