Financial Statements

cash

prompt payment for goods or services in currency or by check

assets

anything of value that is owned

fixed assets

assets that are relatively permanent, such as land, buildings, and equipment

land and buildings

real property

machinery and equipment

examples are trucks, automobiles, pumps, desks, typewriters, computers, and bookcases. .

liabilities

Organization's debts and other financial obligations.

balance sheet

a financial statement that reports assets, liabilities, and owner's equity on a specific date

income statement

a financial statement showing the revenue and expenses for a fiscal period

income

the financial gain (earned or unearned) accruing over a given period of time

expenses

an expense is an outflow of money to another person or group to pay for an item or service, or for a category of costs.

net income

The difference between total revenue and total expenses when total revenue is greater.

short term investments

investments that a company plans to hold for one year or less

accounts receivable

Money an organization's customers owe the organization.

allowance for uncollectible accounts

contra asset account representing the amount of accounts receivable that we do not expect to collect

accumulated depreciation

the total amount of depreciation expense that has been recorded since the purchase of a plant asset

deposits held by others

A deposit account is a current account, savings account, or other type of bank account, at a banking institution that allows money to be deposited and withdrawn by the account holder.

long term investments

generally, invesments in stocks and bonds of other companies that companies normally hold for many years, and, long term assets, such as land and buildings, not currently being used in operations

accounts payable

the amount of money owed, or payable, to a business's creditors

accrued payroll

Amount earned by employees but not yet paid to them. This is a liability.

accrued payroll taxes

. The employer's portion of the FICA, unemployment taxes, worker compensation insurance, and other benefits pertaining to those wages

other accrued liabilities

...are liabilities which have occurred, but have not been paid or logged under accounts payable during an accounting period; in other words, obligations for goods and services provided to a company for which invoices have not yet been received. Examples would include accrued wages payable, accrued sales tax payable, and accrued rent payable.

lease

an agreement that gives one party the use of a commodity for a specified period of time and for a specified price

long-term notes payable

amounts owed to banks and other financing companies that will be paid later than one year from now

stockholders' equity

Captial stock (investments by stockholders) and Retained earnings (earnings kept for use)

capital stock

the maximum number of shares authorized under the terms of a corporation's articles of incorporation

retained earnings

an amount earned by a corporation and not yet distributed to stockholders

sales

income (at invoice values) received for goods and services over some given period of time

sales discounts and allowances

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cost of goods sold

the total cost of buying raw materials and paying for all the factors that go into producing finished goods

direct labor

Factory labor costs that can be easily traced to individual units of product. Also called touch labor.

materials

The pieces or required parts to complete the product

manufacturing overhead

All manufacturing costs except direct materials and direct labor.

rent

a regular payment by a tenant to a landlord for use of some property

building maintenance and repairs

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insurance

The transfer of risk in exchange for payment of a fee

operating expenses

Expenses incurred in paying for the day-to-day activities of the business

sales and marketing expenses

advertising, other promotional expenses

salaries and wages

expenses incurred when engaging employees to work for the business

postage and mailin

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