Under the adjusted balance method, the book balance and the bank balance are brought to a correct cash balance that must appear on the balance sheet. The credit memos are always added to the book balance and the debit memos are always deducted from the book balance. Book Reconciling Items: Credit Memos – Items not representing deposits credited by the bank to the account of the depositor but not yet recorded by the depositor as cash receipt. They increase the bank balance. Debit Memos - Items
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Financial Statements “Accounting Equation” was the very first PhxKlips that was presented. The equation Assets = Liabilities + Owner’s Equity also known as the ALOE equation was one of the main things I’ve learned. I remember doing this in an accounting class that I took in high school. It explained things a lot better than I already knew. This is the known as the foundation for all of the principles and accounting tasks in accounting. “Debits and Credits” was the second PhxKlips that was presented
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lOMoARcPSD Exam 28 March 2013 FINANCIAL ACCOUNTING FOR INTERNATIONAL BUSINESS Income Statement = Total revenues of a company minus the company’s total expenses during a certain so-called accounting period. NET INCOME = REVENUES – EXPENSES Income Statement Revenues -Expenses =Net Income Revenues = increases in stockholder’s equity resulting from selling goods, rendering services, or performing other business activities. Expenses = decreases in stockholders’ equity resulting from the
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Financial Statement Effect Income Balance Account Purpose Statement Sheet Sales Used to record sales Increase revenue whenever a in net sale is made to a cash income or credit customer. Sales Used to record a cash Decrease Returns or credit refund given in net and to a customer who income Allowances returns merchandise. Sales Used to record Decrease Discounts discounts granted to in sales a customer for paying and net an account receivable income within
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Financial Statements In business there are many factors that make an organization a success or a failure. One of the major components in business is accounting and businesses need structure in sells, marketing, promotion or exposure, and a well develop product that society must consume. Looking at all these factors gives business owners a defined idea on how a company should be relevant and profitable in the business world. On the other hand, accounting is probably the most important aspects that
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listed in Key Terms and Concepts. Balance sheet: Statement of financial position that shows Total Assets 5 Total Liabilities 1 Owners’ Equity. The balance sheet usually classifies Total Assets as (1) current assets, (2) investments, (3) property, plant, and equipment, or (4) intangible assets. The balance sheet accounts composing Total Liabilities usually appear under the headings Current Liabilities and Long-Term Liabilities. Income statement: The statement of revenues, expenses, gains, and losses
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operations over a period of time, usually one year. Question 1 options: | income statement | | balance sheet | | statement of cash flow | | statement of financial position | Save Question 2 (4 points) Operating expenses include Question 2 options: | marketing-related expenses. | | the cost for independent dealers to prepare for the distribution of the product. | | interest on all loans. | | income taxes. | Save Question 3 (4 points) For the opening day of The
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THE ACCOUNTING ENVIRONMENT Accounting is the most employable, sought-after major for 2009, according to entrylevel job site CollegeGrad.com. One reason for this interest is found in the statement by former Secretary of the Treasury and Economic Advisor to the President, Lawrence Summers. He noted that the single-most important innovation shaping our capital markets was the idea of generally accepted accounting principles (GAAP). We agree with Mr. Summers. Relevant and reliable financial information
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BUDGETING Introduction and main points A comprehensive (master) budget is a formal statement of management’s expectations regarding sales, expenses, volume, and other financial transactions of the organization for the coming period. Simply put, a budget is a set of pro forma (projected or planned) financial statements. It consists of a pro forma income statement, pro forma balance sheet, and cash budget. A budget is a tool for both planning and control. At the beginning
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distinct from activities of the owner and all other economic entities Going concern assumption •The assumption that an entity will continue to operate in the foreseeable future 13 FINANCIAL STATEMENTS Four financial statements are prepared from the summarised accounting data Each statement provides
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