KIC000070 - * Dividend Revenue A084 4 Revenue and Expense...

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CHAPTER 3 Reporting Operating Results on the Income Statement Cash Vs. Accrual Basis Accounting J>Cash Basis: * revenues are recognized when cash is collected * expenses are recognized when cash is paid };o Accrual Basis: * revenues are recognized when earned * expenses are recognized when incurred 2 Elements of the Income Statement • Revttlua:· Jncreeeee in assets or 5Elltlemems of liabilities from ongoing operations. EIpea1Cl1 - Decreases in 1l.!lse1B or increases in1iabllitics from ongoing operations. 1JIIN, pufod tlUIImJ1IfD1l: indil'lltcllJ lhaf. /.heIlmg 1ir. of a CIIIIIpany _ tlIl nlpOl1cId .Iborter time pmioc!lJ 3 Ch"".l
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Revenue and Expense Account Names »Revenues * Sales revenue * Service revenue * Rental Revenue * Interest Revenue
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Unformatted text preview: * Dividend Revenue A084 4 Revenue and Expense Account Names (cont.) )- Expenses .. Cost of goods sold .. Repairs and maintenance expense .. Advertising expense ... Depreciation and amortization expense ... Insurance expense .. Salaries and wages expense .. Rent expense .. Supplir;a expense .. Transportation expense .. Utilities expense .. Interest expense .. Income tax expense Income Statement Principles )0-Revenue: revenues are recognized when they are earned, usually at the point of sale. )-Matching: requires that expenses be matched into the period in which the related revenue is recognized 6 0.11(1,3 C!I""J...
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This note was uploaded on 09/01/2011 for the course ACCT 284 taught by Professor Clem during the Fall '08 term at Iowa State.

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KIC000070 - * Dividend Revenue A084 4 Revenue and Expense...

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