Lecture on Financial Notes and Accounting Principles

These flashcards cover key terminology and concepts related to financial notes, accounting principles, and interest calculations.

Principal

The original sum of money borrowed or invested, excluding any interest or dividends.

Accounts Receivable

Money owed to a company by its customers for goods or services delivered.

Note Receivable

A written promise for amounts to be received.

Interest Revenue

The income earned from interest on loans or notes.

Accrual

The recognition of revenue or expenses that have been incurred but not yet received or paid.

Materiality

The significance of financial information and its impact on the decision-making of users.

Interest Calculation Formula

Interest = Principal × Rate × Time.

Financial Statement

A formal record of the financial activity of a business, person, or other entity.

GASB 96

A governmental accounting standard related to leases and their capitalization.

Lease Asset

The right to use an asset over the term of a lease agreement.