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11 Cards in this Set

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  • 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
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
Contigencies-When to Report
Never show a gain until Win
Never assume-may be placed in notes
Follows Conservatism
Treasury Stock
Contra Account to Owner's Equity
Income Tax Payable Qualities
take more deductions on IRS return
Investments In Debt and Equity
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
Financial Position