STATEMENT OF FINANCIAL POSITION
ACCOUNTING EQUATION
ASSETS = LIABILITITES + OWNERS' EQUITY
It is a representation to separate debit from credit in the form of “T“.
T-ACCOUNT
Described as a “for the period” report.
STATEMENT OF COMPREHENSIVE INCOME
Two formats of presenting SCI
SINGLE-STEP AND MULTI-STEP
BUILDING
NON CURRENT ASSETS
"Balance Sheet"
STATEMENT OF FINANCIAL POSITION
This format lists all the assets first, followed by liabilities, and finally the equity account.
REPORT FORM
The money a business makes by selling its goods or services
INCOME
It groups all revenue items together and all expense items together
SINGLE-STEP SCI
PREPAID EXPENSES
CURRENT ASSETS
Refers to the investment or the equity of the owner
CAPITAL
This is the modified version of Report Form of SFP where current and noncurrent assets and liabilities were labeled as well.
CLASSIFIED STATEMENT OF FINANCIAL POSITION
An income that is drawn by providing various professional services such as consulting, technical, or other services as part of a profession, trade, or business.
SERVICE INCOME
Supplies expense and Insurance expense are elements of what step?
SINGLE-STEP SCI
Pension Benefit Obligations
NON CURRENT LIABILITIES
These are financial obligations of the business to its creditors and due to be settled within one year from the Statement of Financial Position date.
CURRENT LIABILITITES
Assets are reported on the left side and the list of liabilities and equity are on the right.
ACCOUNT FORM
It occurs when your business has more expenses than earnings during an accounting period.
LOSS/LOSSES
Sales discount, Cost of goods sale, Gross profit
are elements of what step?
MULTI-STEP SCI
Loans Payable
CURRENT LIABILTIES
The statement lists the assets, liabilities, and equity of an organization as of the report date.
STATEMENT OF FINANCIAL POSITION
Elements of Debit and Credit
DEALER
It leads to decrease in equity resulting from the operations of the business and not because of distributions to owner.
EXPENSES
Characterized by the presentation of several subtotals until net income is determined.
MULTI-STEP SCI
CAPITAL
OWNERS' EQUITY