Terms
The length of time for which a business summarizes its financial information and reports its financial performance.
What is a "Fiscal Period"
True or False - An income statement reports information on a specific date indicating the financial condition of a business.
False - What is a balance sheet.
Information to prepare the Statement of Owner's Equity is obtained from the _____________.
What is the worksheet (Account Titles, and Account Balances from the Balance Sheet columns)
Information to prepare the Balance Sheet is obtained from the _________________.
Definition - The calculation and interpretation of a financial ratio.
What is a "Ratio Analysis"
The area of accounting that focuses on reporting information to external users.
What is "Financial Accounting"
The current capital amount will be less than the capital account balance when a business has a net _______?
What is a net LOSS
**Please use the white board to show**
Identify which accounts are pulled from the worksheet to complete a Balance Sheet.
1-Assets
2-Liabilities
3-Owner's Equity
What are Internal Users (managerial accounting)
The area of accounting that focuses on reporting information to internal users.
What is "Managerial Accounting"
When the revenue earned and the expenses incurred to earn that revenue are reported in the same fiscal period, this is known as __________________________
Will the Statement of Owner's Equity be reported on the Balance Sheet?
What is "No" - only the Ending Capital Balance of the Statement of Owner's Equity will be reported on the Balance Sheet.
Write the Heading of a Balance Sheet for Yardley Enterprises on Nov 30, 2021.
**Write on the white board**
What is:
Yardley Enterprises
Balance Sheet
November 30, 2021
Definition - A financial statement that reports the changes in the capital account for a proprietorship for a period of time.
What is a "Statement of Owner's Equity"
The ratio of net income to total sales.
What is a (ROS) Return on Sales.
Where does the information needed to prepare an income statement come from?
The Worksheet (Account Title column, and the Income Statement columns)
The amount of capital recorded on a Statement of Owner's Equity is calculated as:
__________________________________________
**Please show on white board**
What is "(Beginning)Capital Account Balance + Net Income - Drawing Account Balance = Current Capital Amt
To prove that column totals have been verified, what will you place under the balance sheet columns.
On the Balance Sheet, the position of the Total Asset Line will be determined after which section of the Balance Sheet is prepared?
What is the Owner's Equity section?
A comparison between two components of financial information.
What is a "Financial Ratio"
Identify the 4 sections of the Income Statement
1- Heading
2-Revenue
3-Expenses
4-Net Income or Net Loss
1-Beginning Capital
2-Net Income or Net Loss
3-Drawing
For the Balance Sheet, where do you obtain the current capital account balance?
What is the Statement of Owner's Equity
Definition - Reporting an amount on a financial statement as a percentage of another item on the same financial statement.
What is "Vertical Analysis"