Test 1 Study Guide

Test 1 Study Guide - The 4 financial statements are:...

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Unformatted text preview: The 4 financial statements are: Balance Sheet, Income Statement, Retained Earnings Statement, and State of Cash Flow. Balance Sheet A list of the assets, liabilities, and stockholders equity as of a specific date, usually at the close of the last day of a month or a year. Assets = Liabilities + Stockholders Equity Reports financial condition Income Statement a summary of the revenue and the expenses for a specific period of time, such as a month or a year. The income statement reports the change in financial condition due to the operations of a business. Elements of the income statement include: revenues, expenses, and net income/net loss Retained Earnings Statement a summary of the changes in the earnings retained in the corporation for a specific period of time, such as a month or a year Reports change in financial condition Statement of Cash Flow a summary of the cash receipts and cash payments for a specific period of time, such as a month or a year Reports change in financial condition Elements of Statement of Cash Flows include: operating activities, investing activities, financing activities, net decrease, cash at beginning and end of year Classified Balance Sheet a prepared balance sheet with various sections, subsections, and captions that aid in its interpretation. Three main parts: assets, liabilities, and stockholders equity Current assets - Cash and other assets that are expected to be sold or used up within one year. It includes: cash, accounts receivable, notes receivable, supplies, and other prepaid expenses. Noncurrent assets rights that are long term in nature It includes: property, land, plant, and equipment Current Liabilities liabilities that will be due within one year and that are to be paid out of currents assets....
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Test 1 Study Guide - The 4 financial statements are:...

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