How to Financially Account_Notes

How to Financially Account_Notes - Key bold equal confused...

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Key – bold equal confused about order or a question How to Financially Account: Balance Sheet: 1) Determine whether an asset account, liability account, or SE is being effected a. Determine if they are current liabilities and assets or non-current 2) Write out current assets in order of liquidity a. cash b. a/r (maybe in front of short-term investments) c. n/r d. short-term investments (maybe after n/r or a/r) e. prepaid expenses and other expenses f. inventory (supplies) g. (marketable securities) h. other current assets 3) add up current assets 4) write out non current assets in order of liquidity? a. PPE i. Automobile 1. Accumulated depreciation ii. Office equipment 1. Accumulated depreciation b. Other intangible assets c. Goodwill d. Other assets 5) Sum up assets (CA + NCA = TA) 6) Write out current liabilities in order of maturity a. a/p b. n/p c. salary payable d. taxes payable e. accrued expenses i. accrued compensation ii. accrued postretirement healthcare costs f. current portion of long-term debt g. other liabilities 7) add up current liabilities 8) write out non current liabilities in order of maturity a. long-term debt b. other payables and accrued liabilities c. other long-term liabilities 9) sum up liabilities (CL + NCL = TL) 10) write out stockholders equity a. contributed capital i. common stock ii. additional paid-in capital iii. capital stock b. sum up contributed capital
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Key – bold equal confused about order or a question c. write out dividends d. subtract dividends e. write out retained earnings 11) sum total stockholders equity (CC – D + RE = SE) 12) add total liabilities and total stockholders equity 13) check to make sure Total Assets = total liabilities + Stockholders’ Equity Single Step Income Statement: 1) revenues 2) expenses a. COGS b. Selling, general and administrative c. 3) subtract to get pretax income 4) subtract income tax expense to get net income Multi-step Income Statement: 1) write out Revenue a. sales revenue b. franchise fees c. service revenue (does this count?) d. rent revenue 2) add up revenues 3) write out COGS (are there other things for this area) 4) subtract COGS from Revenues
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How to Financially Account_Notes - Key bold equal confused...

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