Untitled Flashcard Set

Cash

Asset

Money you have right now

Accounts Receivable

Asset

Customers owe you money (on account)

Supplies

Asset

Items bought, not yet used

Prepaid Rent

Asset

Rent paid early = future benefit

Equipment

Asset

Long-term physical things

Accounts Payable

Liability

You owe suppliers money

Deferred Revenue

Liability

Customers paid you early — you owe them a service

Notes Payable

Liability

Formal loan you signed a note for

Common Stock

S. Equity

Money investors put in for shares

Retained Earnings

S. Equity

Profits kept in the business

Service Revenue

S. Equity ↑

Earned revenue increases Retained Earnings

Salaries Expense

S. Equity ↓

Expenses decrease Retained Earnings

Dividends

S. Equity ↓

Cash paid out to shareholders