Financial Statements, Cash Flows, and Budgeting
Classified in Economy
Written at on English with a size of 51.29 KB.
ch 1
accounting equation (ch 1):
the balance sheet shows the relationship between assets, liabilities, & stockholder’s equity at a particular date. In equation form, assets = liabilities + stockholder’s equity. This is referred to as the basic accounting equation.
financial statements (ch 1) format/content (which accounts belong on each financial statement):
4 types of financial statements:
income statement:
summarizes all revenue & expenses for a period (month, quarter, or year). If revenues exceed expenses, the result is a net income. If expenses exceed revenue, the result is a net loss.
- revenues
- service revenue
- expenses
- salaries & wages expense
- supplies expense
- rent expense
- insurance expense
- interest expense
- depreciation expense
- total expenses
- net