504792
Financial Accounting
Ch 1 Basics
- Balance Sheet
- Assets
- expected to provide future economic benefit to the company
- cash
- accounts receivable
- notes receivable
- inventory
- prepaid assets
- plant, property and equipment
- intangible assets
- cash
- expected to provide future economic benefit to the company
- Liabilities
- accounts payable
- accrued liabilities
- unearned or deferred revenue
- notes payable
- taxes payable
- taxes payable
- notes payable
- unearned or deferred revenue
- accrued liabilities
- probable future sacrifices of economic resources to non-owners of the organization that are the result of
past activities
- accounts payable
- Stockholder's Equity
- Common stock and Paid-in Capital
- Retained Earnings
- Treasury Stock
- Treasury Stock
- Retained Earnings
- Common stock and Paid-in Capital
- Assets = Liabilities + Stockholder's Equity
- Assets
- Income Statement
- shows the results of a business organization’s operating activities for a period of time.
- Net loss or Net income
- this = Rev - exp
- this = Rev - exp
- Revenues
- Expenses
- Cost of Rev
- Selling, general, and adminstrative exp
- research and development exp
- depreciation or amortization exp
- income taxes exp
- income taxes exp
- depreciation or amortization exp
- research and development exp
- Selling, general, and adminstrative exp
- Cost of Rev
- Sale or Service Rev
- Expenses
- Net loss or Net income
- shows the results of a business organization’s operating activities for a period of time.
- Statement of Retained Earnings
- To start, take retained earnings account amount from the balance sheet
- Next, add net income (or net loss) to this number
- Then, subtract dividends from that number
- The result is the change in RE from one year to the next
- The result is the change in RE from one year to the next
- Then, subtract dividends from that number
- Next, add net income (or net loss) to this number
- The distribution of net economic resources earned by a business organization to the
owners is called dividends
- this statement shows the reasons that caused
retained earnings to increase and decrease from
the prior year
- Retained earnings plus net income minus dividends
- To start, take retained earnings account amount from the balance sheet
- Statement of Cash Flows
- shows the reasons a business organization’s
cash reported on the balance sheet changed
from the prior year.
- operating activities
- Cash activities that relate to the day to day profit generating function of a business are classified as operating
activities. Activities such as cash sales collections, cash accounts receivable collections, cash purchases of
supplies and inventory, cash service payments, cash accounts payable payments and cash salary and wage
payments are classified as operating activities.
- Cash activities that relate to the day to day profit generating function of a business are classified as operating
activities. Activities such as cash sales collections, cash accounts receivable collections, cash purchases of
supplies and inventory, cash service payments, cash accounts payable payments and cash salary and wage
payments are classified as operating activities.
- investing activities
- Cash activities that relate to the purchase or sale of long-term assets are classified as investing activities.
Activities such as the cash purchase or sale of property, plant, equipment and investments would be classified
as investing activities.
- Cash activities that relate to the purchase or sale of long-term assets are classified as investing activities.
Activities such as the cash purchase or sale of property, plant, equipment and investments would be classified
as investing activities.
- financing activities
- Cash activities that relate to financial capital of a business organization are called financing activities.
Activities such as receiving or paying cash to a lender or owner would be classified as financing
activities.
- Cash activities that relate to financial capital of a business organization are called financing activities.
Activities such as receiving or paying cash to a lender or owner would be classified as financing
activities.
- operating activities
- shows the reasons a business organization’s
cash reported on the balance sheet changed
from the prior year.
- Information reported to external users
- These four statements plus notes make up Fin. Acc.
- Notes are simply pages that clarify and expand on information in the fin. statement
- Notes are simply pages that clarify and expand on information in the fin. statement
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