Balance Sheet Flashcards
Cash (Asset)
Money held by the company in its bank accounts.
Marketable Securities (Asset)
Debt or equity securities held by the company
Accounts Receivable
(A/R) (Asset)
Payment owed to a business by its customers for products and services already delivered to them
Inventories (asset)
Inventories represent any unfinished or finished goods that are waiting to be sold, and the direct costs associated with the production of these goods
Prepaid Expenses (asset)
When a company prepays for things like utilities, insurance and rents, the right to the future services
become assets
Property, Plant &
Equipment (PP&E) (asset)
Land, buildings, and machinery used in the manufacture of the company’s services and products
Intangible Assets &
Goodwill (asset)
Non-physical assets such as patents, trademarks, and goodwill acquired by the company that have value based
on the rights belonging to that company
Accounts Payable (Liability)
A company’s obligations to suppliers for services and products already
purchased from them, but which have not been paid. In other words,
accounts payable represent the company’s unpaid bills to its suppliers for services obtained on credit from them.
Accrued Expenses (Liability)
Expenses like employee compensation that the company has incurred, but for
which it has not yet paid
Short-term Debt (Liability)
Debt due within 12 months
Long-term Debt (Liability)
Debt whose maturity exceeds 12 months
Preferred Stock (Equity)
Stock that has special rights and takes priority over common stock
Common Stock (equity)
Represents capital received by a company when it issues shares
Treasury Stock (equity)
Common stock that had been issued and then reacquired (bought back) by
a company
Retained Earnings (equity)
Total company earnings/losses since its inception less all dividends
