CHPT 1 Flashcards
liabilities included on the balance sheet are
Accounts payable, Notes Payable and Wages Payable
what appears on both the income statement and the statement of Retained Earnings
Net Income
Net Income distributed as dividends can be found on
the statement of Retained Earnings
What does a trial balance represent
the order of accounts on a trial balance is as follows: Assests, Liabilities, Stockholders Equity, Dividends, revenues and expenses
Accounts receivable is what type of account
Accounts receivable is an asset reported on the balance sheet
Income Statement (statement of operations)
the heading of the income statement identifies who, what and when, the name of the business, the title of report and the time period covered by financial statement.
A company like apple will translate all any foreign currency into a US dollar- basically assuming all business was done in the us
this is known as the unit of measure assumption
how is net income calculated?
Revenue-Expenses= Net Income
how can I calculate retained earnings?
Retained Earnings = Beginning period retained earnings + net income - stock dividends
Assest Formula
Assests=Liabilities + Stockholders Equity
Net Income Formula
Net Income = Revenue - Expenses
How do you calculate Ending Retained Earnings?
Ending RE= Beginning RE + Net Income - Dividends
How do you calculate Ending Cash?
Ending Cash = Beginning Cash + CF from Operating Activities + CF from investing activities + CF from Financing Activities.
What account is Amounts owed to suppliers
Accounts Payable
A business’s right to collect on Account
Accounts Receivable
