Vocabulary on Accounting

1.  Financial accounting is.....

• reports a company’s operating activity during a specific period of time

• refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time.

• a specific branch of accounting involving a process of recording, summarizing, and reporting the myriad of transactions resulting from business operations over a period of time

balance sheet is...

• refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time

• reports a company’s operating activity during a specific period of time

An income statement

• the money generated from normal business operations, calculated as the average sales price times the number of units sold

• reports a company’s operating activity during a specific period of time

• refers to a financial statement that reports a company's assets, liabilities, and shareholder equity at a specific point in time

Revenue

• the cost of operations that a company incurs to generate revenue

• the money generated from normal business operations, calculated as the average sales price times the number of units sold

• reports a company’s operating activity during a specific period of time

An expense

• reports a company’s operating activity during a specific period of time

• the money generated from normal business operations, calculated as the average sales price times the number of units sold

• the cost of operations that a company incurs to generate revenue