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cheatsheet - Sole Proprietorship-1 Owner Profit taxable to...

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Sole Proprietorship -1 Owner, Profit taxable to owner, owner liable for bus. Debts. – Partnership - 2+ owner, prof taxable to all owners, owners liable for bus. Debts. – Corp. # owners, prof tax to corp, owners not liable for bus debts. Managers, Board of Directors- Int users. Investors, Govt- Ext. users. Bal. Sheet - Assets=Liabilities+SE. dr+ cr- = dr- cr+ + dr- cr+ se- cont cap- given to company by stockholders in exchange for stock…ret earn- generated by company through profitable operations. Inc. Statement - Rev-Exp=Net Inc… sales rev, wage exp, supplies exp, int exp, rent exp, utilities exp, insurance exp… St. of Ret Earnings - Beg Ret Earn+Net Inc-Dividends=End Ret Earnings…. Net inc and dividends from this period Dividends are amounts distributed this period St. of Cash Flows - Cash flow from Op. activities-day to day sales, CF from Investing Activitites- buying asset(truck)., CF from Financing activities- investors put $ into business= Change in cash + Beg Cash Balance = Ending Cash Balance Analyze Transactions- Detect Transaction…Examine accounts affected…classify each account as A, L or SE.. identify financial effects,.. end with effects on Acct equation Financial info must be Relevant, Reliable, Comparable, Consistent Trial Balance: dr cr List all Bal sheet acct List all Inc ST accounts Totals Debits=Credits Class. Bal Sheet Assets: Current Assets, Total, Non current assets, total nca, Total Assets Current Liab, Total, Non current, total ncl, Total Liabilities SE: Cont Cap, Ret Earnings, Total SE Total Liab+SE Inc ST Rev-Exp=Op Inc+Other rev/gains-other expenses/losses=inc b4 inc tax exp-inc tax ex=Net inc….. Revenue Principle - revenues should be recorded when earned, not when cash is received. Matching Principle- Expenses be recorded in same period as the revenues they generate, not necessarily in same period as cash is paid for them.
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