Kế toán, kiểm toán - Chapter 2: Basic financial statements

Basic Financial StatementsChapter 2Describes where the enterprise stands at a specific date.Income StatementBalance SheetStatement of Cash FlowsIntroduction to Financial StatementsDepicts the revenue and expenses for a designated period of time.Income StatementBalance SheetStatement of Cash FlowsIntroduction to Financial StatementsDepicts the ways cash has changed during a designated period of time.Income StatementBalance SheetStatement of Cash FlowsIntroduction to Financial StatementsA Starting Point: Statement of Financial PositionThe Concept of the Business EntityVagabond Travel AgencyA business entity is separate from the personal affairs of its owner.AssetsAssets are economic resources that are owned by the business and are expected to benefit future operations.AssetsCost PrincipleGoing-ConcernAssumptionObjectivity PrincipleStable-DollarAssumptionThese accounting principles support cost as the basis for asset valuation.LiabilitiesLiabilities are debts that represent negative future cash flows for the enterprise. Owners’ EquityOwners’ equity represents the owners’ claims on the assets of the business. The Accounting Equation Assets = Liabilities + Owners’ Equity$300,000 = $80,000 + $220,000Relationships Among Financial StatementsDate at beginning of periodDate at end of periodBalance SheetBalance SheetTimeIncome StatementStatement of Cash Flows Financial Statement ArticulationStatement of Cash FlowsBalance SheetIncome StatementOther Information:Nonfinancial disclosuresManagement interpretationIndustryCompetitorsNational economyFinancial Reporting and Financial StatementsFinancial statements are just one source of financial accounting information.Reporting Ownership Equity in the Statement of Financial PositionSole ProprietorshipsPartnershipsCorporationsEnd of Chapter 2