Unit 1 - Financial Analysis

A business owned by one individual.

• Corporation

• Partnership

• Service Business

• Sole Proprietorship

The rights of the owners of a business.

• Charter

• Equity

• Assets

• Liabilities

The difference between the amounts received from customers for goods or services provided and the amounts paid for the inputs used to provide the goods or services.

• Profit

• Loss

• Expenses

• Revenue

The liability created by a purchase on account.

• Accounts Receivable

• Expense

• Accounts Payable

• Equity

The amount by which expenses exceed revenues.

• Equal

• Net Income

• Net Loss

• Accounting Equation

An information system that provides reports to stakeholders about the economic activities and condition of a business.

• Accounting

• Fiscal Year

• Accounting Year

• Math

An assumption that requires that financial reports be prepared assuming that the entity will continue operating in the future.

• GAAP

• Assets

• Going Concern

• Corporation

The branch of accounting that is concerned with recording transactions using generally accepted accounting principles (GAAP) for a business or other economic unit and with a periodic preparation of various statements from such records. Used to show external users where they stand.

• Management Accounting

• Financial Accounting

• Accounting

• Accounting Equation

Moral principles that guide the conduct of individuals.

• Ethics

• Accounting

• GAAP

• Equity

Moral principles that guide the conduct of individuals.

• Partnership

• Sole Properitorship

• Manufacturing

• Corporation