Accounting Process: Chapter 8 Flashcards
______________ are those intended to meet “equally” the needs of all users.
General-Purpose Financial Statements
It provides information regarding the financial performance of the business or its profitability.
Income Statement
It shows the changes in the interest of the owner(s).
Statement of Changes in Owner’s Equity
It lists down the economic resources being controlled by the firm, and from which liquidity and solvency are determined.
Balance Sheet
It shows how cash was affected by the operating, investing and financing activities.
Statement of Cash Flows
An ______ also known as the result of operation of an entity is a summary of income earned and expenses incurred for a certain period of time.
Income Statement
It is also known as the capital statement. It explains what happened to the capital or claim of the owner.
Statement of Changes in Owner’s Equity
Balance Sheet Form: where all elements are in one column with the liabilities and owner’s equity placed after the assets
Report Form
Balance Sheet Form: assets on the left side with liabilities and owner’s equity on the right side
Account Form
Closing the books means bringing the temporary or nominal accounts to ___________ by transferring them to the capital account or owner’s equity.
Zero Balances
It is an account used to close the nominal values and bring them to the capital account.
Income Summary
It is prepared after closing the books and contains only real accounts with balances.
Post-Closing Trial Balance
It is used to bring forward the accounts with balances to the next accounting period.
Opening Entry
It is prepared in the first day of the succeeding reporting period.
Reversing Entry
The comparison made by two periods.
Intracomparability
