Video Notes: Revenues, Expenses, Assets, Liabilities and Stockholders' Equity (VOCABULARY Flashcards)

Vocabulary flashcards covering key terms from the lecture video notes on revenues, expenses, assets, liabilities, and stockholders' equity.

Revenue

Income earned from selling goods or providing services.

Sales revenue

Revenue from the sale of goods to customers.

Interest revenue

Revenue earned from lending money or investing funds.

Fee revenue

Revenue earned directly from providing services (fees).

Lease revenue

Revenue earned from renting out property, building, or equipment.

Expenses

Costs incurred in earning revenues.

Cost of goods sold (COGS)

Direct costs of producing or acquiring goods that are sold.

Wages expense

Cost of employee wages for the period.

Rent expense

Cost of using property or facilities for a period.

Depreciation expense

Allocation of the cost of a tangible asset over its useful life.

Advertising expense

Costs incurred to promote the business.

Insurance expense

Cost of insurance coverage used in operations.

Repairs expense

Costs to repair or maintain assets or facilities.

Income tax expense

Current tax expense on income payable to tax authorities.

Interest expense

Cost of borrowing money or servicing debt.

Short-term investments

Investments expected to be converted to cash within a year; highly liquid.

Cash

Money the company holds on hand or in its bank accounts.

Accounts receivable

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

Notes receivable

Written promise from a customer to pay a specified amount plus interest.

Inventory

Goods a company holds for sale in the ordinary course of business.

Supplies

Items used in day-to-day operations not intended for sale.

Prepaid expenses

Payments made in advance for goods/services to be used later.

Investments

Long-term assets held for the purpose of generating returns.

Equipment

Tangible long-term assets used in business operations.

Buildings

Long-term assets used for business operations.

Land

Physical ground owned for business operations.

Intangibles

Non-physical assets like patents, copyrights, licenses.

Accrued liabilities

Expenses incurred but not yet paid.

Accounts payable

Amounts owed to vendors for goods/services received but not yet paid.

Taxes payable

Taxes owed but not yet paid.

Unearned revenue

Cash received in advance for goods/services not yet provided.

Stockholders' equity

Owners' claim on assets after liabilities; includes stock and retained earnings.

Stock

Equity raised by issuing shares of ownership in the company.

Dividends

Distributions of profits to stockholders.

Retained earnings

Accumulated net income kept in the company rather than paid as dividends.

Liabilities

Obligations or debts owed by the company.

Assets

Resources with economic value owned by the company.

Operating activities

Day-to-day business activities that affect net income.

Investing activities

Transactions involving long-term assets and investments.

Financing activities

Transactions with lenders and owners to raise capital or repay debt.