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ACTBAS1 Reviewer 4 - ACTBAS1 Reviewer Part 4 FINANCIAL...

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ACTBAS1 Reviewer Part 4 FINANCIAL STATEMENTS A) Statement of financial position - also known as the balance sheet. Commonly misplaced accounts: Accrued Income –in the current assets under trade and other receivables. Accrued Expense –in the current liabilities under trade and other payables. Unearned Income – in the current liabilities under trade and other payables. Supplies – should be in the current assets under prepaid expenses. Loans Payable, Bonds Payable, and Mortgage Payable (LBM) – always under non current liabilities unless indicated as short term. Notes Payable – in the current liabilities under trade and other payables if silent. If indicated as long term, then it is under non current liabilities. B) Income Statement – revenues and expenses (nominal accounts) * Income accounts other than service income may be under Other Income. (Notes to FS) * If Total Revenue > Total Expense = Net Income. Otherwise, it is Net Loss.
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