Produced at the ends of fiscal years to see how a company is balancing out. Assets = liabilities + SH's equity. Answers the question of what is the financial condition of the organization on a given day.

(a)  

Produced in between when balance sheets are produced. Revenue - expenses = net income. Answers the question how well did the organization do during a given period.

(a)  

Produced in between when balance sheets will be produced. Cash Flows in operations + cash flows in investing + cash flows in financing = net change in $. Answers the question of how well did the organization do during a given period.

(a)  

Retained earnings = net income - (a)  

an economic resource a business owns or controls providing measurable future economic benefit.

(a)  

claims against the business from outsiders for cash or other assets at some future date.

(a)  

a measure of the owner's claim on the assets of the business. made up of contributed capital + earned capital (retained earnings).

(a)  

equals revenues minus expenses

(a)  

increases in net assets resulting from operating activities

(a)  

decreases in net assets or net assets sacrificed to obtain the revenues

(a)  

to keep the accounting equation in balance, at least two accounts will be affected

(a)  

True or false:

Assets = liabilities + stockholder's equity (common stock & retained earnings [+ revenues - expenses - dividends])

(a)  

(a)   only shows up on a company's balance sheet when they buy another company and pay more than the fair value of that company's net assets

The change in the Stockholder's equity resulting from business operations

(a)  

The left side of a t-account

(a)  

right side of a t-account

(a)  

when an asset increases, which side of the t-account will it increase on

(a)  

which side of the t-account for liabilities will increase when a liability increases

(a)  

which side of the t-account for equities will increase when an equity increases (also the same side as a revenue)

(a)  

which side of the t-accounts for expenses and dividend will increase when these accounts increase

(a)  

True or false: Your debits and credits should always equal each other

(a)  

a listing of account balances, separated into debit and credit columns, proves that debits = credits, and provides the raw materials for the construction of the financial statements. People outside the company NEVER see this.

(a)  

true or false: no account appears both in the income statement and balance sheet

(a)  

ending retained earnings = beginning retained earnings + net income - (a)  

true or false: ending cash flows should at one point = total net income

(a)  

Adjusts an amount previously recorded in a balance sheet account, these decrease balance sheet account and increase income statement account, cash precedes income statement recognition.

prepaid expenses and unearned revenue are examples of these

(a)  

adjusts for an amount that hasn't previously been recorded in an account, these increases balance sheet account and income statement account. Income statement recognition precedes cash.

accrued expenses and revenues are examples of this

(a)  

(a)   entries never involve cash, these always involve one balance sheet and one income statement account

expenses and revenues get _________ into retained earnings and retained earnings get ________ out to income summary

(a)  

revenues and expenses and dividends are ___________ __________

(a)  

simply the change in cash

(a)  

In a statement of cash flows, interest paid to creditors is classified as a cash flow from (a)   activities

sale of goods, sale of services, interest received, dividends received

(a)  

purchase of goods, payment of employees, payment of operating expenses, and interest paid

(a)  

purchase of plant assets, purchase of securities, purchase of business segments, and making loans

(a)  

collection of principal on loan and sale of plant assets, business segments, and securities

(a)  

paying dividends, repaying of principle on loans, purchase of treasury stock

(a)  

issuing notes, bonds, and stock

(a)  

Change in (a)   = operating activities - investing activities + financing activities

in the indirect method, you start with ____________ ______

(a)  

in an asset increases, cash goes

(a)  

if a liability increases, cash goes

(a)