Business Chapters 8 and 9

The process of planning, recording, analyzing, and interpreting financial information.

• Financial Statements

• Accounting

• Fiscal Year (FY)

• Generally Accepted Accounting Principles (GAAP)

Financial reports that summarize the financial condition and operations of a business

• Financial Statements

• Accounting

• Fiscal Year (FY)

• Generally Accepted Accounting Principles (GAAP)

A set of accounting standards that are used in the preparation of financial statements

• Financial Statements

• Accounting

• Fiscal Year (FY)

• Generally Accepted Accounting Principles (GAAP)

A twelve-month period that is used for bookkeeping, or accounting, purposes.

• Financial Statements

• Accounting

• Fiscal Year (FY)

• Generally Accepted Accounting Principles (GAAP)

Fundamental Accounting Equation

• Assets + Liabilities + Owner's Equity = 0

• Assets = Liabilities + Owner's Equity

• Assets = Liabilities - Owner's Equity

• Assets = Liabilities - 2 x Owner's Equity

The difference between assets and liabilities

• Net worth

• Balance Sheet

• Assets

• Liabilities

A financial statement that reports assets, liabilities, and owner's equity on a specific date.

• Net worth

• Balance Sheet

• Assets

• Owner's Equity

Anything a company or person owns that has a dollar value.

• Net worth

• Balance Sheet

• Assets

• Owner's Equity

The amount remaining after the value of all liabilities is subtracted from the value of all assets

• Liabilities

• Balance Sheet

• Assets

• Owner's Equity

Amounts to be received in the future due to the sale of goods or services

• Accounts Receivable

• Accounts Payable

• Income Statement