Cfa-23. Financial Reporting Mechanics

Front 1

Accounts

Back 1

a

Front 2

Contra Accounts

Back 2

a

Front 3

Financial Statement Elements

Back 3

-Assets-the firm's economic resources

-Liabilities-creditors' claims on the firm's resources

-Owner's Equity-paid-in capital (common and preferred stock), retained earnings, and cumulative other comprehensive income.

-Revenue: sales, investment income, and gains

-Expenses:cost of goods sold, selling and administrative expenses, depreciation, interest, taxes, and losses.

Front 4

Accounting Equations

Back 4

basic:
- assets = liabilities + owners' equity

expanded:
-assets = liabilities + contributed capital + ending retained earnings

-assets = liabilities + contributed capital + beginning retained earnings + revenue-expenses-dividends

Front 5

Double-Entry Accounting

Back 5

-a transaction has to be recorded in at least two accounts

-an increasein an asset account must be balanced by a decrease in another asset account or by an increase in a liability or owners' equity account.

Front 6

Accrual Accounting

Back 6

权责发生制

Revenue is recorded when the firm earns it and expenses are recorded as the firm incurs them, regardless of whether cash has actually been paid.

Accruals fall into four categories:
1.Unearned Revenue
2.Accrued Revenue
3.Prepaid Expenses
4.Accrued Expenses

Front 7

Unearned Revenue

Back 7

-预收收入
-the firm receives cash before it provides a good or service to customers
-

Front 8

Accrued Revenue

Back 8

-应计收入
-the firm provides goods or services before it receives cash payment.
-

Front 9

Prepaid Expenses

Back 9

-预付费用
-the firm pays cash ahead of time for an anticipated expense.
-

Front 10

Accrued Expenses

Back 10

-应急费用
-The firm owes cash for expenses it has incurred.
-