WGU C213 Accounting for Decision Makers Test Terminologies

WGU C213 Accounting for Decision Makers Test Terminologies  Balance sheet - financial position of company at a moment in time  Income statement - financial performance of the company over a period of time  Statement of cash flows - cash receipts and disbursements of company over a period of time  Lender - predict ability to repay loans  Investors - predict future earnings and dividends  Suppliers & customers - ability to pay for goods and honor contracts  Company management - analyze company's strengths and weaknesses  Accounting equation - assets = liabilities + owner's equity  Assets - resources, typically owned by the company  Liabilities - obligations or debts of the company  Owners equity - direct and indirect investments owners (stockholders) have made  Liquidity - the ease with which an asset can be converted into cash  Current assets - cash and other assets expected to be exchanged for cash or consumed within a year  Accounts receivable - amounts owed by customers as a result of credit sales, usually collected in cash within 60 days of the sale.  Short-term investments - investments in stocks or bonds of another company that the company plans to sell within 12 monts  Long term assets - assets the company does not expect to convert to cash or consume within 12 months  Long-term investments - investments in stock or bonds of another company that the company does not plan to sell within 12 months  Property, plant, and equipment (pp&e) - land, buildings, machinery, and tools.  Intangible assets - assets that have to physical or tangible characteristics (patents, copyrights, and trademarks)