Financial Statements
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Answer Tax QuestionsWithin Financial Statements , what are some examples of current assets ?
Asked Tuesday, October 10, 2000 by an anonymous user
Current assets include: Cash, petty cash, accounts and notes receivable, inventories and any other item that can be converted into cash within one year.
Within Financial Statements , what are some examples of assets ?
Asked Tuesday, October 10, 2000 by an anonymous user
Assets include: Cash, land, buildings, merchandise, equipment and anything the business owns that has monetary value.
Within Financial Statements , what are some examples of fixed assets ?
Asked Tuesday, October 10, 2000 by an anonymous user
Fixed assets are: Land, buildings, equipment, machinery, fixtures, furniture, office equipment and tools - less accumulated depreciation.
What is depreciation ?
Asked Tuesday, October 10, 2000 by an anonymous user
Depreciation is the systematic charging of a portion of the costs of fixed assets against annual revenues over a period of time.
Within Financial Statements , what are some examples of liabilities ?
Asked Tuesday, October 10, 2000 by an anonymous user
Liabilities are everything that a business owes its creditors. Examples include: accounts payable and notes payable.
What are retained earnings as related to financial statements ?
Asked Tuesday, October 10, 2000 by an anonymous user
Retained Earnings are the cumulative total of all earnings, net of dividends, that have been retained and reinvested in the business since its inception.
What is an Income Statement ?
Asked Tuesday, October 10, 2000 by an anonymous user
The income statement is the profit and loss statement of a business. It shows the performance of a business over a period of time such as a month or quarter or year. The income statement is preferable prepared in comparative form to show changes from the preceding year. Extraordinary gains and losses of material amount should be shown separately. Also for public companies earnings per share should be presented on the income statement. The basic accounting formula is Sales Revenues minus Expenses = Income or Loss.
What is a Statement of Retained Earnings ?
Asked Tuesday, October 10, 2000 by an anonymous user
The Statement of Retained Earnings reconciles the net income earned during a given period and any cash dividends paid with the change in retained earnings between the start and end of that period. The basic accounting equation is Beginning Balance, plus Net Income or Loss for the period, minus Dividends declared = Ending balance. The statement of Retained Earnings is frequently combined with the income statement.
What is a Cash Flow Statement ?
Asked Tuesday, October 10, 2000 by an anonymous user
The cash flow statement provides a summary of the firm's operating, investment, and financing cash flows and reconciles them with changes in its cash and marketable securities during the period of concern. The cash flow statement is sometimes called a source and use statement.
