INCOME STATEMENT
The income statement of a proprietorship has two MAIN sections:
What is Revenue and Expenses
The financial statement that reports the business's profit or loss.
What is Income Statement?
If a business does not complete a worksheet, where do they get the numbers for their financial statements?
What is the general ledger
The mathematical equation that the balance sheet represents
What is A=L + OE
Any persons or group who will be affected by an action by the company
What is a stakeholder?
The heading of an income statement
What is Company Name, Income Statement, For Month Ended...
The financial statement that formally reports the accounting equation.
What is Balance Sheet?
The beginning capital is obtained from this.
What is a worksheet? or GL
Three examples of Assets
What is Cash, Petty Cash, A/R, Supplies, Prepaid Insurance
Applied when financial statements contain all information necessary to understand a business's financial condition.
What is Adequate Disclosure?
Income Statement with two sources of Revenue differ how?
What is both revenue are listed in the "detail" column and totaled in the summary column.
Profit must be large enough to
What is Cover Expenses and the desired amount of Net Income.
The temporary accounts that affect capital.
What is Revenue, Expenses and Drawing
The two sources of information that is obtained from for the balance sheet
What is Balance Sheet columns of the worksheet and the Calculation of Capital?
The same accounting procedures are followed in the same way in each accounting period.
What is Consistent Reporting?
Calculation for total expenses component percentage
What is Total Expenses/Total Sales
The business's total expenses are greater than the total revenue, the difference is known as
What is Net Loss
The calculation for ending capital
What is Beginning Capital plus Net Income (or less Net Loss) Less Drawing
The information needed to prepare the assets section of the balance sheet is obtained from (Be specific)
What is worksheet's balance sheet debit column?
A Source Document is prepared for each transaction.
What is Objective Evidence?
Advertising Expense = 100 Accounts Payable = 2,000 Cash = 20,000 Sales = 10,000 Rent Expense = 2,500 Wage Expense = 3,000 Net Income/Net Loss and amount?
What is Net Income of $4,400?
For a compound percentage to be useful, a business must know...
What is acceptable percentages (industry standards)
Calculate ending capital given the following: Beg. Capital = 10,000 Sales = 2,000 Net Loss = 3,000 Drawing = 2,000 Cash = 11,000
What is 5,000?
The source for capital for the balance sheet
What is a Mathematical Equation?
Revenue is recorded at the time goods or services are sold.
What is Realization of Revenue?