Contributed Capital and Retained Earnings make up Stockholders’ Equity. Assets = Liabilities + Stockholders’ Equity Income Statement (prepared first) Contains revenues and expenses. Earnings per Share (EPS) must be reported on the Income Statement. Measured by time period Statement of Stockholders’ Equity Net income appears on the statement of stockholders’ equity as an increase in Retained Earnings. Balance Sheet Assets = Liabilities + Stockholders’ Equity Net book value reflects the actual value of assets after Accumulated depreciation (afschrijvingen) Statement of Cash Flows is a list of all transactions of the period that affected the Cash account (asset). Three categories are: Operating activities, Investing activities, and Financing activities. Supplemental Disclosure: Interest paid, Income Taxes paid, and A listing of the nature and amounts of significant non-cash transactions. Net profit margin indicates how effective management is at generating profit on every dollar of sales Closing the books (end of the accounting cycle) Permanent (real) accounts are the balance sheet accounts that carry their ending balances into the next accounting period. Are not reduced to zero at the end of the accounting period. Balance Sheet account balances carry forward from period to period. Assets, Liabilities and Stockholders’ Equity at 31 December 2008. A new year (1 January) starts with Assets, Liabilities and Stockholders’ Equity of the prior year (31 December)
Contributed Capital and Retained Earnings make up Stockholders’ Equity. Assets = Liabilities + Stockholders’ Equity Income Statement (prepared first) Contains revenues and expenses. Earnings per Share (EPS) must be reported on the Income Statement. Measured by time period Statement of Stockholders’ Equity Net income appears on the statement of stockholders’ equity as an increase in Retained Earnings. Balance Sheet Assets = Liabilities + Stockholders’ Equity Net book value reflects the actual value of assets after Accumulated depreciation (afschrijvingen) Statement of Cash Flows is a list of all transactions of the period that affected the Cash account (asset). Three categories are: Operating activities, Investing activities, and Financing activities. Supplemental Disclosure: Interest paid, Income Taxes paid, and A listing of the nature and amounts of significant non-cash transactions. Net profit margin indicates how effective management is at generating profit on every dollar of sales Closing the books (end of the accounting cycle) Permanent (real) accounts are the balance sheet accounts that carry their ending balances into the next accounting period. Are not reduced to zero at the end of the accounting period. Balance Sheet account balances carry forward from period to period. Assets, Liabilities and Stockholders’ Equity at 31 December 2008. A new year (1 January) starts with Assets, Liabilities and Stockholders’ Equity of the prior year (31 December)
financial_accounting_-_summary.docx