Accounts payable Amounts fan to providers for goods or services purchased ~ above credit.You space watching: Assets produced by selling goods and also services on credit are:

Accounts union Amounts due indigenous customers because that services currently provided.

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Assets Things of value owned through the business. Examples encompass cash, machines, and also buildings. To their owners, heritage possess organization potential or energy that can be measured and expressed in money terms.

Balance sheet Financial statement that lists a this firm assets, liabilities, and also stockholders’ equity (including disagreement amounts) as of a details moment in time. Likewise called a statement of jae won position.

Business entity ide (or audit entity concept) The separate presence of the service organization.

Capital stock The title given to an same account showing the investment in a business corporation by its stockholders.

Continuity See going-concern concept.

Corporation Business included under the regulations of among the states and also owned through a few stockholders or by thousands of stockholders.

Cost Sacrifice do or the resources given up, measured in money terms, to gain some desired thing, such together a brand-new truck (asset).

Dividend Payment (usually the cash) to the owner of a corporation; the is a circulation of earnings to owners fairly than an expense of act business.

Entity A organization unit the is understood to have actually an visibility separate and also apart indigenous its owners, creditors, employees, customers, other interested parties, and other businesses, and for which accounting records space maintained.

Equities Broadly speaking, all insurance claims to, or understanding in, assets; contains liabilities and stockholders’ equity.

Equity ratio A ratio uncovered by separating stockholders’ same by complete equities (or full assets).

Exchange-price (or cost) ide (principle) The objective money prices figured out in the exchange process are offered to record most assets.

Expenses Costs incurred to produce revenues, measure up by the legacy surrendered or spend in serving customers.

Going-concern (continuity) ide The presumption by the accountant the unless strong evidence exists to the contrary, a business entity will proceed operations right into the unknown future.

Income declare Financial explain that reflects the revenues and expenses and reports the profit of a organization organization for a stated period of time. Sometimes dubbed an earnings statement.

Liabilities Debts fan by a business—or creditors’ equity. Examples: notes payable, account payable.

Manufacturing providers Companies the buy materials, transform them into products, and also then market the products to various other companies or to last customers.

Merchandising companies Companies that purchase items ready for sale and also sell them come customers.

Money measurement ide Recording and also reporting economic task in a usual monetary unit of measure up such together the dollar.

Net earnings Amount whereby the revenues of a period exceed the costs of the very same period.

Net lose Amount by which the expenses of a duration exceed the earnings of the exact same period.

Notes payable Amounts fan to parties who loan the firm money after the owner signs a written commitment (a note) for the firm to repay every loan.

Partnership An unincorporated company owned by 2 or an ext persons connected as partners.

Periodicity (time periods) ide An assumption that one entity’s life have the right to be meaningfully subdivided right into time durations (such together months or years) for functions of report its financial activities.

Profitability Ability to generate income. The revenue statement shows a this firm profitability.

Retained income Accumulated net revenue less dividend distribution to stockholders.

Revenues Inflows of heritage (such together cash) resulting from the revenue of products or the rendering of services to customers.

Service suppliers Companies (such as accounting firms, legislation firms, or dry cleaning establishments) that do services because that a fee.

Single proprietorship An unincorporated service owned by an individual and often controlled by the individual.

Solvency Ability to salary debts as they become due. The balance sheet mirrors a that company solvency.

Source document Any composed or printed evidence of a organization transaction that describes the necessary facts of that transaction, such together receipts for cash payment or received.

Statement of cash flows Financial statement reflecting cash inflows and also outflows because that a agency over a period of time.

Statement that retained income Financial statement supplied to describe the alters in retained earnings that emerged between 2 balance sheet dates.

Stockholders’ equity The owners’ attention in a corporation.

Stockholders or shareholder Owners that a corporation; castle buy shares of stock, which room units the ownership, in the corporation.

See more: Identify The Correct Statement Regarding Strategic Leadership.

Transaction A business task or event that causes a measurable adjust in the items in the audit equation, heritage = legal responsibility + Equity.