BA211Z Midterm Skills List and Study Aid

A collection of vocabulary flashcards based on essential concepts from the BA211Z Midterm Skills List and Study Aid.

Financial Accounting

A field of accounting that involves recognizing business activities measured for decision making purposes.

Four Key Financial Statements

Balance Sheet, Income Statement, Statement of Stockholders’ Equity, Statement of Cash Flows.

Asset Classifications

Categories used to classify different types of assets, such as current and long-term assets.

Liabilities

Amounts owed to creditors, representing obligations of the company.

Operating Cash Flows

Cash flows resulting from the primary operations of a company.

Investing Activities

Transactions involving the purchase and sale of long-term resources.

Financing Activities

Transactions with investors and creditors used to fund operations.

Accrual-Basis Accounting

Accounting method recognizing revenues and expenses when they occur, regardless of cash transactions.

Deferred Revenue

Liability created when cash is received before services or goods are provided.

Accounts Receivable

Amount due from customers for goods or services provided on credit.

Bad Debt Expense

Expense related to accounts receivable that may not be collected.

Net Realizable Value

Estimated amount that accounts receivable can be collected and reported on the balance sheet.

GAAP

Generally Accepted Accounting Principles, the rules governing financial reporting in the U.S.

Trial Balance

A summary of all accounts and their balances at a particular point, used to check the equality of debits and credits.

Closing Entries

Adjustments made at the end of an accounting period to transfer temporary account balances to permanent accounts.

Depreciation

The allocation of the cost of a long-lived asset over its useful life.

Corporation

A legal entity separate from its owners, providing limited liability to shareholders.

Sole Proprietorship

A business owned and operated by a single individual.

Partnership

A business owned by two or more individuals.

Income Statement

A financial statement showing revenues and expenses over a specific period.

Balance Sheet

A financial statement that reports a company's assets, liabilities, and equity at a specific point in time.