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15 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Business transaction |
Any financial event that changes the resources of a firm |
Purchases, sales, payments, and receipts of cash |
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Assets |
The property that a business owns |
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Liabilities |
The debts or obligations of the business |
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Owner's equity |
The owner's financial interest |
Also called proprietorship or net worth |
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Balance sheet |
A financial statement that reviews the status of the firm's assets, liabilities, and owner's equity. |
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Which side of the balance sheet are assets listed on? |
The left |
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Which side of the balance sheet are liabilities and owner's equity on? |
The right side |
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Fundamental accounting equation |
The relationship between assets and liabilities plus owner's equity |
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Withdrawals |
Funds taken from the business by the owner for personal use |
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Income statement |
Shows the results of business operations for a specific period of time such as a month, a quarter, or a year |
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Net income |
Results when revenue is greater than expenses for the period |
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Net loss |
Results when expenses are greater than Revenue |
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Break even |
Occurs when revenue and expenses are equal |
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What are the parts of the three line heading for an income statement |
Who, what, and when |
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Fair market value |
The current worth of an asset or the price the asset would bring if sold on the open market |
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