Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/11

Click to flip

11 Cards in this Set

  • Front
  • Back
FASB Statement of Concepts No. 5
Recommends that a full set of fianancial statements should show financial position at end of period,net income for the period,comprehensive income for the period,cash flows for the period and investments by and distributions to owners for the period.
Balance Sheet Abilities
Provides Info about accounts, liabilities, and owners equity
Assists in the con. of liquidity and financial flexibility, aids in assessing risk of predicting future cash flows
Balance Sheet Limitations
Doesn't reflect current value
Many estimates and judgements
Omits many items of financial value
Assets On the Balance Sheet include
Current Assets
Short Term Investments
Receivables
Inventories
Prepaid Expenses
Liabilities on the Balance Sheet Include
Current Liabilties
Short Term Debt
Accounts Payable
Advances from customers
Income Taxes Payable
Current portion of long term debt
The Operating Cycle
Cash...Inventories....Receivables....Cash...etc
Contigencies-When to Report
Never show a gain until Win
Never assume-may be placed in notes
Follows Conservatism
Treasury Stock
Investment
Contra Account to Owner's Equity
Income Tax Payable Qualities
take more deductions on IRS return
Investments In Debt and Equity
Securities
Trading-Current Assets-FMV
Available for Sale-Current or long term-FMV
Held to Mature-Current or long term-Historical Cost
Three Basic Formats for Balance Sheets
Reprot form-Vertical
Account-Horizontal
Financial Position