Ch. 2 (IFSA) Summary Flashcards
(43 cards)
___ can be classified into three groups: operating activities, investing activities, and financing activities.
Business activities
Business activities can be classified into three groups: ___, investing activities, and financing activities.
operating activities
Business activities can be classified into three groups: operating activities, ___, and financing activities.
investing activities
Business activities can be classified into three groups: operating activities, investing activities, and ___.
financing activities
Companies classify ___ into common accounts that are components of the five financial statement elements: assets, liabilities, equity, revenue, and expense.
transactions
Companies classify transactions into ___ that are components of the five financial statement elements: assets, liabilities, equity, revenue, and expense.
common accounts
Companies classify transactions into common accounts that are components of ___: assets, liabilities, equity, revenue, and expense.
the five financial statement elements
Companies classify transactions into common accounts that are components of the five financial statement elements: ___, liabilities, equity, revenue, and expense.
assets
Companies classify transactions into common accounts that are components of the five financial statement elements: assets, ___, equity, revenue, and expense.
liabilities
Companies classify transactions into common accounts that are components of the five financial statement elements: assets, liabilities, ___, revenue, and expense.
equity
Companies classify transactions into common accounts that are components of the five financial statement elements: assets, liabilities, equity, ___, and expense.
revenue
Companies classify transactions into common accounts that are components of the five financial statement elements: assets, liabilities, equity, revenue, and ___.
expense
The core of the accounting process is ___: Assets = Liabilities + Owners’ equity.
the basic accounting equation
The core of the accounting process is the basic accounting equation: ___ = Liabilities + Owners’ equity.
Assets
The core of the accounting process is the basic accounting equation: Assets = ___ + Owners’ equity.
Liabilities
The core of the accounting process is the basic accounting equation: Assets = Liabilities + ___.
Owners’ equity
___ is Assets = Liabilities + Contributed capital + Beginning retained earnings + Revenue - Expenses - Dividends.
The expanded accounting equation
The expanded accounting equation is ___ = Liabilities + Contributed capital + Beginning retained earnings + Revenue - Expenses - Dividends.
Assets
The expanded accounting equation is Assets = ___ + Contributed capital + Beginning retained earnings + Revenue - Expenses - Dividends.
Liabilities
The expanded accounting equation is Assets = Liabilities + ___ + Beginning retained earnings + Revenue - Expenses - Dividends.
Contributed capital
The expanded accounting equation is Assets = Liabilities + Contributed capital + ___ + Revenue - Expenses - Dividends.
Beginning retained earnings
The expanded accounting equation is Assets = Liabilities + Contributed capital + Beginning retained earnings + ___ - Expenses - Dividends.
Revenue
The expanded accounting equation is Assets = Liabilities + Contributed capital + Beginning retained earnings + Revenue - ___ - Dividends.
Expenses
The expanded accounting equation is Assets = Liabilities + Contributed capital + Beginning retained earnings + Revenue - Expenses - ___.
Dividends
