Liability created by buying goods or services on credit.

Amounts due from customers for credit sales.

Information and measurement system that identifies, records, and communicates relevant information about a company’s business activities.

Subtracts expenses from revenues to yield a net income or loss over a specified period of time.

Corporation’s distributions of assets to its owners.

Owner’s claim on the assets of a business; equals the residual interest in an entity’s assets after deducting liabilities.

Lists types and dollar amounts of assets, liabilities, and equity at a specific date.

The amount of net income left over for the business after it has paid out dividends to its shareholders.

Prescribes that revenue is recognized when earned.

Categorizes net cash provided or used during a period as operating, investing and financing activities, and reconciles beginning and ending cash and cash equivalents.

Managerial accounting is aimed at helping internal users make better decisions.

Financial accounting is aimed at helping external users understand the organization's business transactions.

Revenue should be recognized when it is earned.

Cash flow records cash when it is received.

Assets are resources a business owns or controls that are expected to provide current and future benefits to the business.

Liabilities are creditors’ claims on an organization’s assets involving probable future payment of assets, products, or services.

The expanded accounting equation says that assets should equal liabilities plus common stock plus revenue minus expenses and dividends.

If net income is greater than dividends, then owner's equity should increase (all else equal).

If a sale is made but not paid for, revenue for the sale should be recorded.

When cash is paid for sale from a previous period, there will be an increase in cash flow for the current period (all else equal).

Financial accounting is aimed at helping internal users make better decisions.

Managerial accounting is aimed at helping external users understand the organization's business transactions.

Revenue should be recognized when it is paid for.

Cash flow is recorded when it is earned.

Liabilities are resources a business owns or controls that are expected to provide current and future benefits to the business.

Equity refers to creditors’ claims on an organization’s assets involving probable future payment of assets, products, or services.

The expanded accounting equation says that assets should equal liabilities plus common stock plus dividends plus revenue minus expenses.

If net income is greater than dividends, then owner's equity will decrease.

If a sale is made but not paid for, revenue for the sale should not be recorded.

When cash is paid for sale from a previous period, there will be no increase in cash flow for the current period (all else equal).