Midterm - Accounting Flashcards
(47 cards)
Accounts Payable (A/P)
expenses that a business has incurred but has not yet paid
Accounts Receivable (A/R)
money thats flowing into a business thats not received yet
Accrued Expense
an expense that the business has incurred but has not yet paid
Asset
own
Equity
worth
Revenue
incoming money (increase in assets or decrease in liability)
Cash Flow
movement of the money you receive and the money you spend
Common Stock (C/S)
ownership exchange for cash
Retained Earnings (R/E)
leftover net income that goes into shareholders equity
Notes Payable (N/P)
a written promise made by the business to pay a debt, usually involving interest, in the future
Creditors
lend financial resources to businesses (bank)
Interest
the cost of borrowing money
Investors are Called
stockholders
Liability
the obligations a business has
Investors
provide financial resources in exchange for ownership interests in businesses
Stockholders Equity
the businesses commitment to the stockholders
Expense
an economic sacrifice a business incurs in the process of generating revenue
Dividend
the distribution of assets generated through earnings
General Ledger
the complete collection of a company’s accounts
Income Statement
matches revenue (benefits) with the expenses (sacrifices) that were incurred to generate revenue
Net Loss
when expenses are greater than revenue
Net Income
revenues exceeds expenses
Balance Sheet
the accounting equation
Liquidity
is measured by how fast an asset can be converted into cash
