Accounts payable Amounts owed to carriers for items or solutions purchased on crmodify.
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Accounts receivable Amounts due from customers for solutions currently offered.
Assets Things of value owned by the company. Examples include cash, makers, and also buildings. To their owners, assets possess business potential or energy that deserve to be measured and expressed in money terms.
Balance sheet Financial statement that lists a company’s assets, liabilities, and stockholders’ equity (consisting of dollar amounts) as of a details minute in time. Also dubbed a statement of financial position.
Firm entity idea (or accounting entity concept) The separate presence of the company organization.
Capital stock The title given to an equity account showing the investment in a organization corporation by its stockholders.
Continuity See going-concern concept.
Corporation Firm included under the legislations of among the says and also owned by a few stockholders or by thousands of stockholders.
Cost Sacrifice made or the sources offered up, measured in money terms, to get some wanted point, such as a new truck (asset).
Dividend Payment (generally of cash) to the owners of a corporation; it is a distribution of inpertained to owners fairly than an expense of doing service.
Entity A business unit that is deemed to have an existence separate and apart from its owners, creditors, employees, customers, various other interested parties, and various other businesses, and also for which bookkeeping records are maintained.
Equities Broadly speaking, all clintends to, or interests in, assets; contains liabilities and stockholders’ equity.
Equity ratio A ratio uncovered by dividing stockholders’ equity by full equities (or complete assets).
Exchange-price (or cost) principle (principle) The objective money prices determined in the exchange process are offered to document the majority of assets.
Expenses Costs incurred to produce revenues, measured by the assets surrendered or consumed in serving customers.
Going-worry (continuity) principle The presumption by the accountant that unmuch less strong proof exists to the contrary, a company entity will certainly continue operations into the indefinite future.
Income statement Financial statement that reflects the earnings and also prices and reports the profitability of a organization organization for a declared period of time. Sometimes referred to as an earnings statement.
Liabilities Debts owed by a business—or creditors’ equity. Examples: notes payable, accounts payable.
Manufacturing providers Companies that buy materials, convert them into products, and also then market the assets to various other carriers or to final customers.
Merchandising carriers Companies that purchase products ready for sale and also sell them to customers.
Money measurement idea Recording and also reporting economic task in a prevalent monetary unit of measure such as the dollar.
Net income Amount through which the earnings of a duration exceed the costs of the exact same period.
Net loss Amount whereby the prices of a duration exceed the profits of the very same duration.
Notes payable Amounts owed to parties who loan the firm money after the owner indicators a created agreement (a note) for the company to repay each loan.
Partnership An unincorporated company owned by 2 or even more persons linked as partners.
Periodicity (time periods) concept An assumption that an entity’s life deserve to be meaningtotally subdivided right into time periods (such as months or years) for functions of reporting its financial tasks.
Profitability Ability to generate revenue. The earnings statement mirrors a company’s profitcapability.
Retained earnings Accumulated net revenue much less dividend distributions to stockholders.
Revenues Inflows of assets (such as cash) resulting from the sale of commodities or the rendering of services to customers.
Service providers Companies (such as accounting firms, law firms, or dry cleaning establishments) that perdevelop solutions for a fee.
Single proprietorship An unintegrated organization owned by an individual and often controlled by that individual.
Solvency Ability to pay debts as they come to be due. The balance sheet mirrors a company’s solvency.
Source document Any composed or printed evidence of a company transaction that explains the vital facts of that transaction, such as receipts for cash passist or obtained.
Statement of cash flows Financial statement showing cash inflows and outflows for a agency over a period of time.
Statement of maintained income Financial statement offered to describe the transforms in maintained income that developed in between two balance sheet dates.
Stockholders’ equity The owners’ interest in a corporation.
Stockholders or shareholders Owners of a corporation; they buy shares of stock, which are systems of ownership, in the corporation.
Overview of transactions Teaching tool to show the effects of transactions on the audit equation.
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Transaction A company task or occasion that reasons a measurable adjust in the items in the accounting equation, Assets = Liabilities + Equity.