Financial Statements

Financial Position: Balance sheet
1. Assets/Liabilities/Shareholders' equity
  1. Assets
    1. Liabilities
      1. Payable/Unearned Revenue
    2. Cash/Trade Receivables/Prepaymetns/etc...
  2. Equity
    1. Share Capital/Retained Earnings
2. Assets = Liabilities + Shareholders' Equity
3. Statement of Financial Position
Income Statement
1. Revenues less expenses in accounting period
  1. Typical Accounts
    1. Revenues: Sales, Fee, Interest Rent
    2. Expenses: Wages, rent, interest, etc...
2. Profit Added to -
Statement of Retained earnings
1. Accumulation of profits not yet distributed
2. Retained Earnings from Previous Year
  1. Plus: Yearly Profits
    1. Less: Dividents
      1. +/- Other changes
        Ending Retained Earnings
        Retained Earnings
3. Ending retained earnings -
Cash Flow Statements
1. Inflows and outflows of cash in operating, investing, and financing
2. ENDING CASH BALANCE: Into balance sheet
Closing the books
1. Closed (temporary
  1. All Revenue Accounts
    1. All Expense Accounts
      1. Dviidends
2. Permanent (Open)
  1. Assets/Liabilities Accounts
    1. Equity

Resource summary

	Created by Charlemagne almost 10 years ago