101 Understanding The Accounting Equation, Debit And Credits

Assest – are resources a company owns or controls
long-term investments – generally, (1) investments in stocks and bonds of other corporations that companies hold for more than one year; (2) long-term assets, such as land and buildings, not currently being used in the company's operations; and (3) long-term notes receivable
Accounts Receivable – Customer owes money
Asset
Balance Sheet
Debit
Cost Principle – record and report assets at cost to acquire until disposal
retained earnings statement – A summary of the changes in the retained earnings in a corporation for a specific period of time, such as a month or a year.
Liabilities – creditors claim on the assets of a company
The things one owns are – Assets
Expenses – the decrease in stockholders' equity that result from operating a buisness
limited liability company – a company in which each member is only liable for his or her own actions
(Purpose of) Statement of Financial Position – To measure assets, liabilities and equity at one point in time for the entity.
If the nominal rate of interest is 2 percent, and the expected inflation rate is -10 percent, the real rate of interest is
Increased – an entry on the credit side of a revenue account indicates the account has been
Debt Ratio= – Total Liabilities divided by total assets
controlling – identifying what went wrong, monitoring operating results and comparing actual results with the expected results.
If the nоminаl rаte оf interest is 2 percent, аnd the expected inflatiоn rate is -10 percent, the real rate of interest is
Financial position – Is the enterprises set of financial resources and obligations at a point in time

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