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9 Cards in this Set

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Also EARNINGS, PROFIT & LOSS, or TURNOVER STATEMENT
Operating Statement
R - C = P (Operating Statement)
FORMULA for Operating Statment
Matching Principle during limited and stated time period. All accounts starts with zero each new time period. Never over 1 year.
Shows both Revenue and Expenses which result from business operations of serving Customers, with Revenue matched to both variable and fixed business costs necessary to produce the product or service delivered, during the same time period. Tied to Balance Sheet by Current Earnings
ACCRUAL BASIS (Operating Stement)
Also CASH FLOW, CASH FORECAST. Records only CASH TRANSACTIONS during limited and stated time period.
Differs from Accrual Statements by timing of when cash transactions settle legal commitments for past or future payments. Tied to Balance Sheet by amount of Cash on given date.
CASH STATEMENTS
Beginning Balance + Inflows -Outflows = Ending Balance
Formula (Cash Flow)
Also STATEMENT OF FINANCIAL
POSITION. ACCRUAL BASIS Snapshot at an instant in time, which is same as ending date of the accompanying Operating Statement or Cash Statement.
Statement of the 3 primary elements of business, their amounts and relations to each other. Current cumulative account balances never return to zero
BALANCE SHEETS
Assets = Liabilities + Net Worth
Formula (Balance Sheets)
Custom designed to serve your business and problems. Revenue (if any) or total cost from cost center ÷ number of units resulting or produced from that activity. Manager specifies desired information and uses results for managerial decisions.
SPECIAL REPORTS
Revenue (if any) or total cost from cost center ÷ number of units
Formula (Special Reports)