Accounting Terms

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Accounting Terms
2013-08-29 11:43:20
Accounting ACC201

Accounting terms
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  1. What three types of activities are all businesses involved in?
    financing, investing and operating
  2. debt financing
    borrowing money
  3. equity financing
    issuing shares of stock in exchange for cash
  4. liabilities
    amounts owed to creditors (in the form of debt and other obligations)
  5. bonds payable
    debt securities sold to investors that must be repaid at a particular date
  6. common stock
    total amount paid in by stockholders for the shares they purchase
  7. dividends
    cash payments to stockholders
  8. assets
    resources owned by a business
  9. fixed assets (sometimes)
    plant, property and equipment
  10. Revenue
    the increase in assets or decrease in liabilities resulting from the sale of goods or the performance of services in the normal course of business.
  11. expenses
    the costs of assets consumed or services used in the process of generating revenue
  12. net income
    revenues exceed expenses
  13. net loss
    expenses exceed revenues
  14. income statement
    shows how your company performed over a period of time by reporting revenues and expenses
  15. retained earnings statement
    indicates how much of a previous income was distributed to you and other owners of your business in the form of dividends, and how much was retained in the business for future growth
  16. balance sheet
    presents a picture for a point in time of what your business owns (assets) and what it owes (liabilities)
  17. statement of cash flows
    shows where your business obtained cash during a period of time and how that cash was used
  18. stockholder equity
    owners' claims to assets
  19. Accounts payable - classif & financial state?
    Current liability, balance sheet
  20. Accounts receivable - classif & fs?
    Current asset, balance sheet
  21. Accumulated depreciation - classif & FS?
    PPE - contra, balance sheet
  22. Administrative expenses - classify & fs?
    Operating expenses, income statement
  23. Allowance for doubtful accounts - classify & fs?
    Current Assets - contra, balance sheet
  24. Amortization expense - classify & fs?
    Operating expense, income statement
  25. Bad debts expense
    Operating expense, income statement
  26. Bonds payable - classify & fs?
    Long term liability, balance sheet