Unit 5 Finance and Accounting Flashcard

Front

The financial gain earned when the revenue generated from a business exceeds all the expenses associated with achieving that revenue, over a certain time period is:

Back

profit

Front

What is used to report revenues, expenses and income for a specific time period?

Back

Profit and Loss Statement

Front

When a shoe manufacturer purchases fabric, rubber, and other raw materials, then adds all the direct labor and manufacturing costs used to produce those shoes, that is:

Back

Cost of Goods Sold

Front

How is Gross Profit calculated?

Back

Revenue minus Cost of Goods Sold

Front

Gross Profit minus Operating Expenses equals:

Back

Operating Income

Front

Revenue is the total sales for a company over a certain period of time, and is also often referred to as the _______________.

Back

top line

Front

The process of recording, maintaining, and reporting an organization’s financial transactions and records is:

Back

accounting

Front

An organization’s main accounting record that stores transactions and financial data, organized by accounts is the:

Back

General Ledger

Front

Complete the definition: The “double-entry accounting system” means that every financial transaction has an equal and opposite effect, recorded in at least two accounts, where one account gets a ___________ and the other a ___________.

Back

debit; credit

Front

What is the accounting equation?

Back

Assets = Liabilities + Shareholders’ Equity