Accounting Terms
Terms
undefined, object
copy deck
-
Balance Sheet
(sometimes called the statement of financial position) - A listing of the organizations assets, liabilities, and owners equity at a point in time.
-
Accounting Equation
or
Balance Sheet Equation -
Assets = Liabilities + Owners' Equity
($320 = $117 + 203) - Assets
-
The amount of resources owned by the entity.
(cash, merchandise inventory, or equipment) - Liabilities
-
Amounts owed to other entities.
(accounts payable) -
Owners' Equity
(sometimes referred to as net assets or net worth) - The ownership right of owners of the entity in the assets that remain after deducting liabilities.
- Cash
- Cash on hand and in the bank or banks used.
- Accounts Receibable
- Amounts due from customers who have purchased merchandise on credit and agreed to pay within a specified period
- Merchandise Inventory
- The cost to an entity of the merchandise that it has acquired buy not yet sold.
- Equipment
- The cost of all equipment used run the entity.
- Accumulated Depreciation
- The portion of the cost of equipment that is estimated to have been used up in the process of operating the business.
- Depreciation
- The process of spreading the cost of an asset over its useful life to the entity.
- Accounts Payable
- Amounts owed to suppliers of merchandise of merchandise inventory that was purchased on credit and will be paid within a specific period of time.
- Accrued Liabilities
- Amounts owed to various creditors, including any qages owed to employees for services provided.
- Short-Term Debt
- Amounts borrowed, probably from banks, that will be repaid within one year of the balance sheet date.
- Long-Term Debt
- Amounts borrowed from banks or others that will not be repaid within one year of the balance sheet date.