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Accounting Study Guide |
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| CPAClass.com | GAAP | Study |
Financial Statements
| Components of Financial Statements |
| Financial Statements |
 Statement of Financial Accounting Concepts (SFAC) No. 5"Recognition and Measurement in Financial Statements of Business Enterprises" Issued in December 1984. |
| Full set of financial statements |
A full set of financial statements for a period should show:
Financial position at the end of the period
Earnings (net income) for the period
Comprehensive income (total
nonowner changes in equity) for the period
Cash flows
during the period
Investments by and distributions to owners during the period
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| Comprehensive Inome |
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Comprehensive income --> includes all recognized changes in net assets --> except the investments by owners and distributions to owners. |
| Primary Financial Statements |
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Balance Sheet --> Reports the financial position at the end of the period.
Income Statement--> Reports the results of operations for the period.
Statement of Cash
Flows--> Reports cash inflows and outflows during the period.
Statement of Stockholders' Equity--> Reports the changes in stockholders' equity during the period. |
| Components of Balance Sheet |
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Assets --> Represents future economic benefits.
Liabilities--> Represents future economic sacrifices.
Stockholders' Equity--> Represents the residual portion of the assets after subtracting liabilities. (Stockholders' Equity = Assets - Liabilities) |
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Accounting
Equation Assets = Liabilities + Stockholders' Equity Examples of Asset Accounts Examples of Liability Accounts Examples of Stockholders' Equity Accounts |
| Components of Income Statement |
| Revenues
Expenses
Net Income = Revenues - Expenses Examples of Revenue and Gain Accounts Examples of Expense and Loss Accounts |
| Components of the Statement of Cash Flows |
| Cash Flows from Operating
Activities
Cash Flows from Investing Activities
Cash Flows from Financing Activities Examples of Cash Flows from Operating Activities Section Examples of Cash Flows from Investing Activities Section Examples of Cash Flows from Financing Activities Section |
| Components of the Statement of Stockholders' Equity |
| Common Stock Preferred Stock Additional Paid-in Capital
(Paid-in capital in excess of par value) Retained Earnings |
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