Balance Sheet

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  1. What are economic resources that the business plans to use in the future to make money?
  2. What is the financial report that shows business assets, liabilities, and owner's equity as of a particular day?
    Balance Sheet.
  3. When a company's assets equal its liabilities plus owner's equity, then you have what?
    Balanced Books.
  4. Assets that help a business or a person make money are considered what?
  5. When money is changed into another asset that helps the business make money, it is considered what?
  6. What are outsiders to whom the company owes money called?
  7. Assets that can be used to pay current liabilities are considered what?
    Current Assets.
  8. Debts that must be paid within one year or one operating cycle, whichever is longer, are called what?
    Current Liabilities.
  9. The skill of producing financial statements from business transactions is called what?
    Financial Accounting.
  10. What is the 12-month period a business uses to report the results of its operations called?
    Fiscal Year.
  11. All financial statements contain a standard 3-line what?
  12. The 3-line heading of a financial report is composed of what information?
    • - Name of the Company
    •  - Name of the Report
    •  - Date or time period
  13. What are debts owed to people outside the company called?
  14. If it is easier to change an asset into cash, then the asset contains more what?
  15. What is the natural period of time before certain business activities tend to repeat - normally one year?
    Operating Cycle.
  16. The portion of the business the owner gets to keep after paying off all creditors is called what?
    Owner's Equity.
  17. The individual owner (without partners) of an unincorporated business is known as what?
    Sole Proprietor.
  18. Assets = ??? + ???
    Liabilities + Owner's Equity
  19. Owner's Equity = ??? - ???
    Assets - Liabilities
  20. Liabilities = ??? - ???
    Assets - Owner's Equity
  21. The financial statements report about a single business where every business gets its own set of books and accountants do not mix in the owner's personal financial information is known as what?
    Business Entity.
  22. What is the formula for current ratio?
    Current Assets / Current Liabilities
  23. What are the formulas for debt ratio?
    Total Liabilities / Total Assets, OR 100% - Equity Ratio = Debt Ratio
  24. What are the formulas for Equity Ratio?
    Total Equity / Total Assets, OR 100% - Debt Ratio = Equity Ratio
Card Set:
Balance Sheet
2015-09-17 20:41:54
Balance Sheet

Terms used for balance sheet.
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