Cheat sheet acct basics - Quick View of Basic Accounting...

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For personal use by the original purchaser only. Copyright © 2009 AccountingCoach.com. 1 Quick View of Basic Accounting AccountingCoach.com Quick View of Basic Accounting is a quick reference and overview of accounting concepts. You should consult a professional accountant and/or the accounting profession’s official pronouncements for specific situations and for more complete information. FINANCIAL STATEMENTS Financial statements are general purpose, external financial statements prepared according to generally accepted accounting principles. Some terms that apply to the financial statements include: balance sheet reports the amounts of assets, liabilities, and stockholders’ equity at a specified moment, such as midnight of December 31; also known as the statement of financial position. income statement reports revenues, expenses, gains, losses, and net income during the period of time stated in its heading; also known as the statement of operations and as the profit and loss (P&L) statement. statement of cash flows reports the changes in cash and cash equivalents during a period of time according to three activities: operating, investing, and financing. statement of stockholders’ equity reports the changes in the components of stockholders’ equity, including net income, other comprehensive income, dividends, exercise of stock options. interim financial statements issued between the annual financial statements, e.g. quarterly audited financial statements independent CPA firm gives assurance about reasonableness and compliance with accounting principles. financial reporting includes financial statements, annual and quarterly reports to SEC and stockholders, press releases and other financial reports.
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For personal use by the original purchaser only. Copyright © 2009 AccountingCoach.com. 2 BALANCE SHEET The balance sheet or statement of financial position reports assets, liabilities, owner’s or stockholders’ equity at a point in time. Some terms that apply to balance sheets include: assets resources, things owned, and prepaid or deferred expenses; examples include cash, accounts receivable, inventory, prepaid insurance, land, equipment, vehicles, furnishings. liabilities obligations and deferred revenues; examples include accounts payable, loans payable, wages payable, interest payable, customer deposits, deferred revenues. owner’s equity a sole proprietorship’s assets minus its liabilities. stockholders’ equity a corporation’s assets minus its liabilities; reports paid-in capital, retained earnings, and treasury stock. accounting equation Assets = Liabilities + Stockholders’ (Owner’s) Equity. classified balance sheet groups assets into the following classification: current assets, investments, property, plant and equipment, and other assets. Liabilities are classified as either current or long-term. current asset
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This note was uploaded on 04/24/2010 for the course ECON 12123 taught by Professor Donald during the Spring '10 term at Johnson County Community College.

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Cheat sheet acct basics - Quick View of Basic Accounting...

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