SS C&D: Accrual Accounting & Financial statements Presentation Flashcards
1
Q
What are three categories of adjusting entries?
A
Deferrals: Adjustment made to item that has been paid or can received
Depreciation: Cost of PPE over useful life
Accruals: Adjustment made to item that has not been paid for
2
Q
Carrying amount formula
A
Carrying amount = purchase price - accumulated deprecation
3
Q
What is a current asset?
A
- Asset is cash or cash equivalent
- Expected that asset will be realized within 12 months
4
Q
What is a current liability?
A
- Liabilities held for purpose of trading
- Expected that liability is settled within 12 months
5
Q
Total Comprehensive Income formula
A
Total Comprehensive Income = Net Income + Other Comprehensive Income
6
Q
Equity formula
A
Ending equity = Beginning equity + Transactions (Div and Share issuance) + total comprehensive income
