Far 2 Flashcards
(13 cards)
What is a Balance Sheet (B/S)?
A financial statement providing assets, liabilities, and equity at a single point in time.
What are Current Assets?
Assets that are expected to be converted into cash or used up within one year.
List examples of Current Assets.
Cash, Accounts Receivable, Inventory, Prepaid Expenses, Short-Term Investments.
What are Current Liabilities?
Obligations that are expected to be settled within one year.
List examples of Current Liabilities.
Accounts Payable, Salaries Payable, Taxes Payable, Accrued Expenses.
What are Non-Current Assets?
Assets that are expected to provide economic benefits beyond one year.
List examples of Non-Current Assets.
Long-Term Investments, Property, Plant & Equipment.
What are Non-Current Liabilities?
Obligations that are due beyond one year.
What is Equity?
The owner’s interest in the assets of a business after deducting liabilities.
What are Retained Earnings?
Profits held for future use.
What is an Income Statement (I/S)?
A financial statement that reports a company’s financial performance over a specific period.
What does the Income Statement include?
Revenue, Cost of Goods Sold, Gross Profit/Loss, Overhead Expense, Operating Profit/Loss, Interest Expense, Tax Expense, Net Profit/Loss.
What is the relationship between assets and liabilities?
Business owns assets and owes liabilities.
