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accounting
study tool for business tech.
Financial statements | A report that summarizes financial data over a period of time. *most include balance sheet and income statement. |
Balance sheet | reports a business’s assets, liabilities, and capital on a specific date. (follows a an accounting equation: assets= liabilities + capital) |
Liabilities | These claim against assets, debts owed to others ( examples would be accounts payable and loans payable) |
Capital | amount a certain individual or organization is worth |
Accounting equation | Assets = Liabilities + Capital |
Merchandise inventory | includes goods that have been acquired by a distributer, wholesaler, or retailer from suppliers with the intent of selling goods to third parties. |
Accounts receivable | Money owed to a company by a customer by a customer for products and services provided on credit. |
Accounts payable | Money which a company owes to vendors for products and services purchased on credit. |
Income statement | A summary of a management’s performance as reflected in the profitability of an organization over a certain period. |
Cash flow | includes the movement of cash into and out of a business. Also, you must have cash on hand to pay bills. |
Working capital | the difference between current assets and current liabilities. For this , you must determine if you are able to pay off you debts. |