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7 Cards in this Set
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- 3rd side (hint)
Trial balance : |
List of all balances extracted from ledgers by balancing accounts. Credit balances must equal debit balances. |
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In a trial balance and the income statement which accounts have Dr and which have cr balances ? |
DAX accounts have dr balances ( debtors , assets and expenses ) LIC accounts have cr balances ( liabilities, income , creditors ) |
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Gross profit : |
Revenue generated - cost of goods sold |
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Statement of financial position : |
Balance sheet |
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Aim of statement of financial position : |
To show capital / net assets |
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Derive expression for structure of statement of financial position: |
Assets : liabilities + equity Non current assets + current assets : Non current liabilities+ current liabilities+ capital Non current assets+ current assets- non current liabilities - current liabilities: capital |
Rearrange equation : assets : liabilities+ capital |
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Profit |
Positive change in net assets |
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