What is the formula used to calculate net income on an income statement? Revenue - Expenses = Net Income Net Income - Dividends Assets = Liabilities + Shareholder's Equity Common Stock + Retained Earnings

Revenue - Expenses = Net Income

Which formula represents the balance sheet equation? Common Stock + Retained Earnings Net Income - Dividends Assets = Liabilities + Shareholder's Equity Revenue - Expenses = Net Income

Assets = Liabilities + Shareholder's Equity

What components make up the statement of shareholder's equity? Common Stock + Retained Earnings Net Income - Dividends Revenue - Expenses = Net Income Assets = Liabilities + Shareholder's Equity

Common Stock + Retained Earnings

Financial Accounting Fundamentals: Formulas, Statements & Core Business Principles

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Finance - Personal Finance

michael1tekrzp Created by 10 mon ago

Cards in this deck(28)

What is the formula used to calculate net income on an income statement?

Which formula represents the balance sheet equation?

What components make up the statement of shareholder's equity?

How is retained earnings calculated?

What term describes amounts to be recorded based on products or services sold?

What is the term for the cost of doing business?

What are amounts owed to creditors, often referred to as IOUs?

Who measures the activities of a company and communicates those measurements to others?

What is a form of organization where an entity is legally separated from its owners and issues shares of stock?

Which activities include providing services to customers, paying salaries, and paying for advertising?

What is typically included in annual reports?

What is the distribution of profit to a stockholder called?

Which principles include economic entity, monetary unit, periods, and going concern?

What type of transactions are conducted between a company and a separate entity?

What is rent paid in advance classified as?

When is revenue recognized according to the revenue recognition principle?

What is created when cash is received in advance from customers, obligating the company to provide future services?

What does accounts receivable represent?

Can you provide an example of accounts receivable?

What is the purpose of a journal in accounting?

What is the process of transferring information from the journal to individual general ledger accounts called?

What is the sequence of steps in the accounting cycle?

What is an individual statistic of what is happening, visually represented by a T-account?

What is a list of accounts and their balances at a given time called?

What term describes money spent but not yet used, such as supplies or assets?

What is it called when a service or good is provided, revenue is earned, but money is not yet received?

What are expenses that are building up but have not yet been paid off, such as salaries and interest?

What principle states that expenses should be recognized when they occur, not necessarily when they are paid?

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Financial Accounting Fundamentals: Formulas, Statements & Core Business Principles

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