1 Flashcards
The elements directly related to the measurement of financial performance in the statement of profit or loss and other comprehensive income are
Incom And expenses
Is a simplified version of the financial statement that least a companies assets liabilities and equity without categorizing them into current and non-current item
Unclassified statement of financial position
Is usually assumed as trade receivable unless there is evidence to the contrary. As such accounts received is normally classified as current asset
Accounts receivable
Is treated as trade receivable only if there is evidence that the note receivable was received in exchange for the sale of goods or service in the ordinary course of business.
Note Receivable
Are commonly presented using the classified representation. However there are some entities that use the unclassified representation such as banks and other financial institutions
Balance sheets
Are obligation arising from purchases of inventory that are sold in the ordinary course of business
Trade Payables
This includes the accounts payable and trade notes payable. Payable arising from other sources are classified as
Non Trade payable
Is usually assumed as trade payable unless there is evidence to the contrary as such
Accounts Payable
Treated a straight payable only if there is evidence that it was issued in exchange for the purchase of inventory
Accounts payable
Represents the amount invested by shareholders in exchange for shares
Common stock
Accumulated net income that has not been distributed as dividends
Retained earnings
Capital received from shareholders in excess of the par value of the share issued
National paid in capital
Accounts are presented in the financial statement using this. Is a caption used to describe a group of accounts with similar nature
Line items
Are some short term debt securities that are acquired 3 months prior to their maturity date. This is discussed in higher accounting studies.
Cash Equivalent
Is an account used to record advanced payment made to suppliers for purchase of inventories that have not yet been delivered by the supplier
Advance to suppliers
Also referred to in traditional accounting as prepaid expenses
Prepaid assets
Commonly abbreviated as ppe is also known as fixed assets
Property plant and equipment
Are also referred to as accrued liabilities or in tradition accounting as accrued expenses
Interest payable
Salaries payable
Utilities payable
