Week 4 Flashcards
(9 cards)
1
Q
What is equity?
A
How much of an asset that you own
2
Q
What is liability?
A
How much of your asset is owned to other people, if it applies
3
Q
What is known as the accounting equation?
A
Asset = liability + equity
4
Q
What does a balance sheet show?
A
It shows a list of assets, liability and equity
5
Q
What is revenue?
A
Payment received for services rendered
6
Q
What is an expense?
A
Expenses incurred in the making of the revenue
7
Q
What are the parts of a profit and loss report?
A
- Revenue: how much of our product did we actually spend
- Less expenses: all expenses incurred throughout a particular period of earning revenue
- Profit: Is there more revenue than expenses
8
Q
What does a profit and loss report show us?
A
Does management have control of their business?
9
Q
How often should a profit and loss report be done?
A
Every week
