Simple Income Statement Equation
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Revenues - Expenses = Net Income
Uses of funds
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assets
Federal tax revenue
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Individual income tax, federal payroll, medicare, social security
Pass-through entity
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pass through the owner of the business and are taxed on an individual rate.
Ex: LLC
Cash Basis Accounting
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Records transactions in the period in which cash changes hands, not when
actually occurred. NOT GAAP
Securities and Exchange Commission (SEC)
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Established in 1934Only applies to public companiesRequires public
companies to file the following:Form 10-K (annually)Form 10-Q
(quarterly)Annual financial statements audited by an "independent auditor"
Purpose of statement of retained earnings
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Details the earnings of a company over a specific period of time
Risks of debt investors
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Financial risks
may have to liquidate assets
could cause bankrupcy
Sources of funds
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liabilities and stockholders equity
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Revenues - Expenses = Net Income
Uses of funds
,Give this one a try later!
assets
Federal tax revenue
Give this one a try later!
Individual income tax, federal payroll, medicare, social security
Pass-through entity
Give this one a try later!
pass through the owner of the business and are taxed on an individual rate.
Ex: LLC
Cash Basis Accounting
Give this one a try later!
Records transactions in the period in which cash changes hands, not when
actually occurred. NOT GAAP
Securities and Exchange Commission (SEC)
, Give this one a try later!
Established in 1934Only applies to public companiesRequires public
companies to file the following:Form 10-K (annually)Form 10-Q
(quarterly)Annual financial statements audited by an "independent auditor"
Purpose of statement of retained earnings
Give this one a try later!
Details the earnings of a company over a specific period of time
Risks of debt investors
Give this one a try later!
Financial risks
may have to liquidate assets
could cause bankrupcy
Sources of funds
Give this one a try later!
liabilities and stockholders equity
