Accounting 1 Flashcards
4 financial statements
statement of finincail position, income statement, statement of changes in equity, statement of cash flows
required reporting for public companies
IFRS
cash, accounts receivable, inventory, supplies, prepaid expenses are examples of?
Current Assets
Property plant and equipment, goodwill, long term investments are examples of?
Non-Current assets
first 3 steps in the accounting cycle
Analyze transactions, Journalize, Post
second 3 steps in t he accounting cycle
Trial Balance, Adjusting entries, adjusted trial balance
Last 3 steps in the accounting cycle
Financial statements, closing entries, post closing trial balance
what goes into retained earnings?
revenues-expenses-dividends declared
What goes into shareholders equity
common shares+retained earnings
if an individual asset is increased, there must be either a corresponding:
- decrease in another asset, and/or
- increase in a specific liability, and/or
- increase in common shares or revenues, either of which would result in an increase in shareholders’ equity.
normal balance of assets
debit
normal balance of liabilities
credit
normal balance of common shares
credit
normal balance of retained earnings
credit
normal balance of revenues
credit
