Module 2 Flashcards
These are a structured financial representation of financial position and financial performance of an entity
Financial Statements
These are the building blocks from which financial statements are constructed
Elements of Financial Statement
It is an income arising in the ordinary course of business
Revenue
These are the statements intended to meet the needs of general users
General Purpose Financial Statement
It is the residual interest in the assets of the entity after deducting all its liabilities
Equity
These resources controlled by the entity as result of past transactions and events and from which future economic benefits are expected to flow to the entity
Assets
It is an increase in economic benefits not arising from the ordinary course of business
Gains
It is the listing of all the account and account titles used by an entity
Chart of accounts
These are expenses already incurred but not yet paid
Accrued Expense
These are expenses already paid but not yet incurred.
Prepaid Expense
present obligation of the entity arising from past transactions and events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Examples: Accounts Payable, Salaries Payable, Interest Payable, Utilities Payable
Liabilities
This increases in economic benefits during the accounting period
Income
decreases in economic benefits during the accounting period.
Expense
These are those statements intended to meet the needs of specific or particular users
Specific Purpose Financial Statements
Give the 5 Major types of accounts
Assets
Liabilities
Equity
Income
Expense
