1.1.1 expected to provide future economic benefit to the company
22.214.171.124 accounts receivable
126.96.36.199 notes receivable
188.8.131.52 prepaid assets
184.108.40.206 plant, property and equipment
220.127.116.11 intangible assets
1.2.1 accounts payable
18.104.22.168 accrued liabilities
22.214.171.124.1 unearned or deferred revenue
126.96.36.199.1.1 notes payable
188.8.131.52.1.1.1 taxes payable
1.2.2 probable future sacrifices of economic resources to non-owners of the organization that are the result of
1.3 Stockholder's Equity
1.3.1 Common stock and Paid-in Capital
184.108.40.206 Retained Earnings
220.127.116.11.1 Treasury Stock
1.4 Assets = Liabilities + Stockholder's Equity
2 Income Statement
2.1 shows the results of a business organization’s operating activities for a period of time.
2.1.1 Net loss or Net income
18.104.22.168 this = Rev - exp
22.214.171.124.1 Cost of Rev
126.96.36.199.1.1 Selling, general, and adminstrative exp
188.8.131.52.1.1.1 research and development exp
184.108.40.206.220.127.116.11 depreciation or amortization exp
18.104.22.168.22.214.171.124.1 income taxes exp
126.96.36.199 Sale or Service Rev
3 Statement of Retained Earnings
3.1 To start, take retained earnings account amount from the balance sheet
3.1.1 Next, add net income (or net loss) to this number
188.8.131.52 Then, subtract dividends from that number
184.108.40.206.1 The result is the change in RE from one year to the next
3.2 The distribution of net economic resources earned by a business organization to the
owners is called dividends
3.3 this statement shows the reasons that caused
retained earnings to increase and decrease from
the prior year
3.4 Retained earnings plus net income minus dividends
4 Statement of Cash Flows
4.1 shows the reasons a business organization’s
cash reported on the balance sheet changed
from the prior year.
4.1.1 operating activities
220.127.116.11 Cash activities that relate to the day to day profit generating function of a business are classified as operating
activities. Activities such as cash sales collections, cash accounts receivable collections, cash purchases of
supplies and inventory, cash service payments, cash accounts payable payments and cash salary and wage
payments are classified as operating activities.
4.1.2 investing activities
18.104.22.168 Cash activities that relate to the purchase or sale of long-term assets are classified as investing activities.
Activities such as the cash purchase or sale of property, plant, equipment and investments would be classified
as investing activities.
4.1.3 financing activities
22.214.171.124 Cash activities that relate to financial capital of a business organization are called financing activities.
Activities such as receiving or paying cash to a lender or owner would be classified as financing
5 Information reported to external users
6 These four statements plus notes make up Fin. Acc.
6.1 Notes are simply pages that clarify and expand on information in the fin. statement