Busy. Please wait.
Log in with Clever

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever

Username is available taken
show password

Make sure to remember your password. If you forget it there is no way for StudyStack to send you a reset link. You would need to create a new account.
Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.

Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.
Didn't know it?
click below
Knew it?
click below
Don't Know
Remaining cards (0)
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Financial Statements

AOF Financial Statements Terms

accounting equation Assets = Liabilities plus Owner’s Equity (A = L + OE). This is the same as the balance sheet equation.
audit trail The sequence of detailed transactions, including the source documents, that supports accounting entries. It provides a clear path of transactions that a reviewer can follow in order to understand specific accounting activity.
balance sheet A statement that lists the assets, liabilities, and owner’s equity. It displays a company’s collateral and liquidity at a point in time.
balance sheet equation Assets = Liabilities + Owner’s Equity
beginning capital balance This balance indicates the book value of the owner’s investment (or share of the business) at the beginning of the statement period.
book value The amount of money that an asset on the balance sheet is officially worth based on its age, style, and condition.
cash flow The movement of cash into and/or out of a company.
collateral Assets held by a company but pledged to a lender to secure a loan; in cases where the company doesn’t honor its debt, the lender can take possession of collateralized assets.
ending capital balance This balance indicates the book value of the owner’s investment (or share of the business) at the end of the statement period.
financial statement A report that tells a story about economic resources coming in and going out of a business. No one report tells the whole story.
general ledger The log that contains a record of each account. It’s prepared after the general journal and before the trial balance.
income statement A statement that itemizes the revenue and expenses, and computes the net income or loss for a period of time. Also referred to as a profit and loss statement, a P&L, or a statement of earnings.
income statement equation Revenue – Expenses = Net Income (or Net Loss)
net income A company’s total earnings, calculated by subtracting expenses from income.
net loss The amount by which a company’s expenses exceed its revenue.
slide error An accounting error that misplaces the decimal in a number—for example, when someone records $180 instead of $1,800. Slide errors are also referred to as decimal slips.
statement of changes in owner’s equity (SCOE) A statement that portrays how much the owner invested (contributed or put in), how much the owner withdrew (took out), and how much net income (or net loss) the company generated during a certain statement period.
statement of changes in owner’s equity equation Beginning Capital Balance + Investments + Net Income (or – Net Loss) – Withdrawals = Ending Capital Balance
transposition error An accounting error in which the digits of a number are switched—for example, when someone records 53 instead of 35. Transposition errors can frequently be diagnosed by looking for errors that are divisible by nine.
trial balance A list of all the accounts and their balances. Most information needed for preparing the various financial statements is noted on this single page.
Created by: Nabila105
Popular Accounting sets




Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
restart all cards