Balance sheets

Define Accounting

• the process of recording, analyzing, and interpreting the economic activities of a business

• A method of recording all transactions for a business in a specific format

• bills for goods and services either bought by or sold to the business

• A financial statement that shows the financial position of a business on a single, specific date.

A _____ is any business activity involving money

What is the difference between accounting and bookkeeping?

What is not one of the 3 main types of financial statements?

• Balance Sheet

• Income Statement

• Reports on Financial Statements

• Cash-Flow Statement

What would not be considered a "long-term" asset?

• Furniture

• Inventory

• Property/real estate

• Vehicles

• Accounts receivable

What is an example of a liquid asset?

• Company car

• Cash

• Machinery

• accounts receivable

• Furniture

What is Owner's Equity?

What is the accounting equation?

• Assets = Liabilities + Owner's Equity

• Owner's Equity = Assets - Liabilities

• Liabilities = Assets - Owner's Equity

• All of the above

What are liabilities?

• accounts payable

• loans payable

• Short-term Investments

• taxes owed

• wages owed

_____ is a snapshot of a business at any given time.