Balance Sheet Accounts and Definitions (Assets, Liabilities, Equity)

Vocabulary flashcards covering balance sheet accounts and their definitions (Assets, Liabilities, Equity).

Cash

Money on hand or in the bank - Current Asset

Short-term investments

Investments easily converted to cash (stocks, bonds). - Current Asset

Accounts receivable

Money owed by customers from sales on credit. - Current Asset

Notes receivable

Written promises of payment owed to the company. - Current Asset

Inventory

Goods held for sale. - Current Asset

Supplies

Items used in operations (e.g., office supplies). - Current Asset

Prepaid expenses

Payments made in advance for services (e.g., insurance, rent). - Current Asset

Long-term investments

Investments held for more than a year. - Noncurrent Asset

Equipment

Machinery/tools used for production. - Noncurrent Asset

Buildings

Structures owned by the company. - Noncurrent Asset

Land

Property owned. - Noncurrent Asset

Intangible assets

Non-physical assets (e.g., patents, goodwill). - Noncurrent Asset

Accounts payable

Money owed to suppliers/vendors. - Current Liability

Accrued expenses (payables)

Expenses incurred but unpaid (e.g., wages, utilities). - Current Liability

Short-term notes payable

Loans/debts due within one year. - Current Liability

Taxes payable

Income taxes owed. - Current Liability

Dividends payable

Declared dividends not yet paid to shareholders. - Current Liability

Unearned / deferred revenue

Payment received before services/products are delivered. - Current Liability

Current portion of long-term debt

The part of long-term loans due within the next year. - Current Liability

Long-term notes payable

Loans due after one year. - Noncurrent Liability

Loan / bonds payable

Borrowed money repayable over multiple years. - Noncurrent Liability

Common stock

Value of stock issued to shareholders. - Equity

Additional paid-in capital (APIC)

Extra amount investors paid above par value of stock. - Equity

Retained earnings

Profits kept in the business instead of being paid as dividends. - Equity