Net income is when the balance sheet reports revenues that are larger than expenses.

Assets are the economic resources that are expected to produce future benefits.

Accounts receivable, cash , buildings, and equipment are examples of business expenses.

Net assets is assets minus owner's equity.

GAP are the rules used to prepare financial statements.

Assets are equal to liabilities plus net income.

The revenue recognition principle (realization) states that revenues should be recognized when the cash for the transaction is received.

A summary of the net income, additional investment, and withdrawals are found on the Statement of Owner's Equity.

The financial position of the business is shown on the Income Statement.

The financial statement that shows the results of a firm's operations over a specific time period is called the balance sheet.

Under the revenue recognition principle revenue is recognized only after services have been provided and cash has been received.

Every business transaction has an affect on only one of the elements of the accounting equation.

Inflows of cash or other properties received in exchange for goods or services provided to customers are called revenues.

The financial condition of the business is shown on the Income Statement.

If assets total $20,000 and liabilities total $5,000, then owner's equity is $25,000.

The cost principle states that market value is used to record financial transactions.

Keeping the records of the business separate from the personal records of the owner of the business is following the going concern rule.

The financial position of the business on a given date is reported on the cash flow statement.

The resulting amount when total liabilities are subtracted from total assets is known as owner's equity or net assets.

Using a sales invoice as the basis for recording a sale of merchandise is an example of using the objectivity principle.

Properties or economic resources owned by the business are called assets.

Debts owed by a business or organization are classified as owner's equity.

An account payable is a liability backed by a written promise to make a future payment at a specific time.

The revenue recognition principle provides guidance on when revenue should be reflected on the income statement.

The statement of

The statement of owner's equity reports the changes in equity for a period of time.