Accounting 2013 Class Notes: Balance Sheet and Income Statement Vocabulary

Vocabulary flashcards covering key terms related to balance sheets, income statements, and basic accounting classifications from the lecture notes.

Balance Sheet

A financial statement listing assets, liabilities, and stockholders' equity at a specific date.

Asset

A resource controlled by the entity from which future benefits are expected.

Liability

An obligation arising from past events, settled by sacrificing resources.

Stockholders' Equity

The owners' claim on the company after liabilities are deducted; includes common stock and retained earnings.

Accounts Payable

Amounts owed to suppliers for purchases on credit.

Accounts Receivable

Amounts owed by customers for goods or services sold on credit.

Cash

Money or cash-equivalents available to the business.

Common Stock

Equity issued to shareholders representing ownership in the company.

Equipment

Long-term tangible asset used in operations.

Inventory

Goods held for sale in the ordinary course of business.

Notes Payable

Written promissory notes the company must pay to lenders.

Retained Earnings

Cumulative net income minus dividends, part of stockholders' equity.

Total Assets

Sum of all assets owned by the company.

Total Liabilities and Stockholders' Equity

Sum of liabilities plus stockholders' equity; equals total assets.

Dividends

Distributions of earnings to stockholders.

Land

Long-term asset representing real estate owned by the company.

Sales Revenue

Income earned from selling goods or services.

Supplies

Current asset consisting of expendable items used in operations.

Supplies Expense

Cost of supplies used during a period (expense).

Income Statement

Financial statement that shows revenues and expenses over a period, leading to net income or loss.

Net Income

Revenues minus expenses; increases stockholders' equity.

Admissions Revenue

Revenue from admission charges (e.g., movie tickets).

Concessions Revenue

Revenue from selling concessions (food, drinks).

Concessions Expenses

Costs incurred to provide concessions.

Film Rental Expenses

Costs for renting film content.

Income Tax Expense

Income taxes payable for the period.

Office Expenses

General administrative expenses.

Rent Expense

Cost of renting facilities.

Salaries and Wages Expense

Employee compensation costs.

Balance Sheet Equation

Assets = Liabilities + Stockholders' Equity.

Financing (Creditors vs. Stockholders)

Sources of funds: liabilities come from creditors; equity from owners.

Income Statement Order

Revenue items appear first, followed by expenses, yielding net income.

Labeling and Classifying

The process of naming items and grouping them as assets, liabilities, equity, revenue, or expenses.

Revenue

Increases in equity from delivering goods or services.

Expense

Costs incurred to earn revenues; decreases in equity.