Revenues - ANS Gross increase in equity from a company's business activities that earn
income; also called sales.
Expenses - ANS Outflows or using up of assets as part of operations of a business to generate
sales.
Accounts Receivable - ANS Amounts to be received in the future due to the sale of goods or
services
Accounting Equation - ANS Assets = Liabilities + Equity
Income Statement - ANS describes a company's revenues and expenses along with the
resulting net income or loss over a period of time due to earnings activities
Accounts on Income Statement - ANS Revenues - Expenses
Balance Sheet - ANS Financial statement that lists types and dollar amounts of assets,
liabilities, and equity at a specific date.
Accounts on balance sheet - ANS assets, liabilities, equity
Primary Objective of Financial Reporting - ANS to provide information that is useful to investors
and creditors for decision making
Expanded Accounting Equation - ANS Assets = Liabilities + Common Stock + Revenues -
Expenses - Dividends
FASB (Financial Accounting Standards Board) - ANS sets accounting standards (GAAP) in the
U.S.
T account - ANS debit left, credit right
Normal Balance of Expenses - ANS Debit (decrease equity)
Normal balance of Revenues - ANS credit
Normal Balance of dividends - ANS Dr. (it decreases owner's equity)
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller LEWIS12. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.99. You're not tied to anything after your purchase.