Going Concern Adequate Discloser Stakeholders Income Statement Matching Expense Component Percentage Total Expenses Component Percentage Net Income Component Percentage Accounting Equation 2 Equities Balance Sheet Balance Sheet has 4 Sections Capital Equation  

1. Going Concern

When financial statements are prepared with the expectation that a business will remain in operation forever.

2. Adequate Discloser

When financial statements contain all information necessary to understand a busniess's financial condition.

3. Stakeholders

Persons or groups who will be affected by an action in a business.

4. Income Statement

Heading, revenue, expenses and net income/loss - indicates financial progress of a business in earning a net income or net loss (get information from worksheets income statement columns).

5. Matching Expense

Revenue earned and expenses encurred that go with that revenue are reported in the same fiscal period.

6. Component Percentage

Percentage relationship between one financial statement item and the total that includes that item.

7. Total Expenses Component Percentage

Total expenses divided by total sales.

8. Net Income Component Percentage

Net income divided by total sales.

9. Accounting Equation

Assets=Liability+Capital.

10. 2 Equities

Liabilities and Owner's Equity.

11. Balance Sheet

Reports financial information on a specific date - indicating the financial condition of a business - get information from worksheets balance sheet columns (except capital).

12. Balance Sheet has 4 Sections

Heading, assets, liabilities, and owner's equity - assets on the left - liabilities and owner's equity on the right side.

13. Capital Equation

Capital account balance+net income or -net loss -drawing=current capital (this number goes on the balance sheet).