balance sheets

what is another name for balance sheets?

statement of financial position

what is the accounting equation?

A=L+E

assets= liability+equity

what is an assets

a present right of an equity to an ECONOMIC BENEFIT. generally, the economic benefit eventually results in a cash inflow.

what is liability?

a PRESENT OBLIGATION of an entity to transfer or provide an economic benefit. many liabilities require a transfer of cash but some are fulfilled by providing goods or services.

what is equity?

remaining claim against the assets of a business after liabilities have been satisfied. other names: owner’s equity, shareholders equity, stockholders equity, or net assets

E=A-L

where do you find the accounting equation? A=L-E??

on the balance sheet

is a balance sheet for a specific point in time or a longer term?

specific point in time

what does capital mean?

money

are stock contributions a liability or an equity?

equity

true or false: balance sheets are typically presented in 2year period chunks

true

what is the difference between fiscal year and calendar year?

fiscal year is a date system that some (1/3) businesses use. they can pick their dates of when the year starts and ends to file their quarterly reports. people choose the fiscal year sometimes because of trends in their companies

assets are also called the companies…

resources

_____ of the capital needed to purchase the assets are liabilities and equity

sources

which of the following account types are divided into current and non current portions on the balance sheet?

-asset accounts, equity, or liability??

asset and liability

if you see A=L+OE what does that mean

the same as A=L+E

the o just stands for owner

is stock considered internal or external?

external

is capital earned from the business itself internal or external?

internal