Financing and Accountng Block 1 Chapter 2 Summery
Financial statements A financial statement is a representaton ifa the financial
situaton ofa an enterprise.
Primary fnancial statements Balance sheet (or statement ofa financial positonn
Income statement (or profitt loss statement
Statement ofa cash fows
Balance sheet Balance sheet describes in financial terms where the
enterprise stands at a specific date
Balance sheet:
Many profaessionals accountng shif to key positon in management or organisaton
They are invaluable because works contnuously with issues defined and described I
accountng
A=L+ OE
Assets Are economic recourse that are owned by the Assets activa
business and are expected to benefit it in the Liabilities passiva
fauture Owner’s equity eigen
Liabilites Are debts that need to be paid. They represent
vermogen
fauture negatve cash fows
Owners’ equity Is the owners’ original investment in a business
and accumulated profits over the years
Assets: Liabilites:
- Cash - accounts payable
- Accounts Receivable - notes payable
- Inventory - Salaries Payable
- Supplies - Interest Payable
- Prepaid Rent - Income Tax Payable
- Prepaid Insurance
- Equipment Owners’equity:
- Building - capital stock
- Land - retained earnings
Increases in owners’ equity Decrease in owners’ equity
Soleproprietorship eenmanszaak
Investments ofa cash by Payments ofa cash to owners
Partnership Vennootschap (vof)
owners losses
Corporation NV/BV
profits
Financial statements A financial statement is a representaton ifa the financial
situaton ofa an enterprise.
Primary fnancial statements Balance sheet (or statement ofa financial positonn
Income statement (or profitt loss statement
Statement ofa cash fows
Balance sheet Balance sheet describes in financial terms where the
enterprise stands at a specific date
Balance sheet:
Many profaessionals accountng shif to key positon in management or organisaton
They are invaluable because works contnuously with issues defined and described I
accountng
A=L+ OE
Assets Are economic recourse that are owned by the Assets activa
business and are expected to benefit it in the Liabilities passiva
fauture Owner’s equity eigen
Liabilites Are debts that need to be paid. They represent
vermogen
fauture negatve cash fows
Owners’ equity Is the owners’ original investment in a business
and accumulated profits over the years
Assets: Liabilites:
- Cash - accounts payable
- Accounts Receivable - notes payable
- Inventory - Salaries Payable
- Supplies - Interest Payable
- Prepaid Rent - Income Tax Payable
- Prepaid Insurance
- Equipment Owners’equity:
- Building - capital stock
- Land - retained earnings
Increases in owners’ equity Decrease in owners’ equity
Soleproprietorship eenmanszaak
Investments ofa cash by Payments ofa cash to owners
Partnership Vennootschap (vof)
owners losses
Corporation NV/BV
profits
