Financial Statements & Basics Flashcards
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Terms in this set
- U.S. GAAP Generally Accepted Accounting Principles, the common set of U.S. financial reporting standards.
- Accrual Basis Recognizing revenues when earned and expenses when incurred, regardless of cash timing.
- Matching Principle Recognizing expenses in the same period as the revenues they help to generate.
- Revenue Recognition The standard for recognizing revenue when control of goods or services transfers to the customer.
- Balance Sheet A statement of financial position showing assets, liabilities, and equity at a point in time.
- Income Statement A statement reporting revenues, expenses, and net income over a period of time.
- Statement of Cash Flows A statement classifying cash receipts and payments into operating, investing, and financing activities.
- Accruals and Deferrals Adjusting entries that defer recognition of cash already received or paid until it is earned or incurred.