Supplementary 1 - Financial Statements
Supplementary 1 - Financial Statements
Supplementary 1 - Financial Statements
FINANCIAL STATEMENTS
Agenda
1. Income Statement
2. Balance Sheet
3. Cash Flow Statement
Income Statement
Source: CFI
Income Statement
Main Items:
– Revenues and Gains
Revenues from operating activities
Revenues or income from non-operating activities
Gains (e.g., gain on the sale of long-term assets, gain on lawsuits)
– Expenses and Losses
Expenses involved in operating activities
Expenses from non-operating activities
Losses (e.g., loss on the sale of long-term assets, loss on lawsuits)
– If the net amount of revenues and gains minus expenses and losses is positive, the bottom line of
the profit and loss statement is labeled as net income. If the net amount (or bottom line) is
negative, there is a net loss
4. Income Statement
Multiple-Step
Income
Statement
THAOPUP 7
Balance Sheet
_ Owner _
Owner Capital
Withdrawals + Revenues Expenses
Owner's Equity
Assets
Cash
Accounts Notes
Receivable Receivable
Resources
owned or
Vehicles controlled by Land
a company
Store Buildings
Supplies
Equipment
Liabilities
Accounts Notes
Payable Payable
Creditors’
claims on
assets
Taxes Wages
Payable Payable
Equity Accounts
Owner’s Owner’s
Equity Withdrawals
Equity
Accounts
Owner’s
Revenues Expenses
Capital
Balance Sheet
Double-entry Book-keeping
The standard method for recording transactions
Double-entry Book-keeping
Double-entry Book-keeping
Cash Flows Statement
Showing how much cash is generated and used during a given time
period
Source: CFI
Cash Flows Statement