Week 2 Financial Accounting

A system to identify, measure, and communicate all financial activities.............

• Assets

• Liabilities

• Accounting

• SMART Goals

Business transactions are kept completely separate from its owners

• Cost Principle

• Monetary Unit Principle

• Distinct Entity Principle

• Time Period Principle

A current asset is generally converted into cash within a year or operating period

• True

• False

Property and equipment are examples of current assets

• True

• False

Financial obligations that will not be paid off within a year

• Current Assets

• Account Payables

• Long-Term Liabilities

• Fixed Assets

Owner's Contributions are the cash or assets removed from an event business

• True

• False

The Accounting Equation

• Revenue - Expenses = Profit/Loss

• Assets + Liabilities = Owner's Equity

• Revenue + Expenses = Profit/Loss

• Assets = Liabilities + Owner's Equity