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Unformatted text preview: ACCT 2000 22/01/2009 14:37:00 Financial statement Income statement o Profit/ loss statement o How successful was the company o Summary of results of operations o Summary of revenues and expenses Revenue is inflow of assets for the sales of goods and services Expenses is the outflow of assets and cost incur to generate revenue Revenue Expenses= revenues should be greater then Expenses and its called (Net Income) Financial statement o Company name o Date o Income statement Revenues: computer sales, repair services and total all of your revenues Expenses: commission and advertising General Expenses: Rent, utilities, income taxes, cost of goods sold Balance Sheet o TJ Basketball o 12/31/08 (cumulative) o Summary of assets, liabilities, owners equity Assets: probable future economic benefits Accounts receivable: money people owe you Inventory: all things worth money Liabilities: probable future economic sacrifice Obligations Debt Accounts payable: incoming bills Note: bank loans Owners equity: owners claims to the business Assets Liabilities Snapshot of the companies financial position BALANCE SHEET EXAMPLE TJ BB Corp. Balance sheet 12/31/08 Assets 1 st Current assets: are cash or expected to be turned into cash within 12 months of balance sheet date o Cash is the first thing you see on the balance sheet...
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