Fabm Test learnings

is an account used for a business transaction that is so small that it is not worth categorizing in a separate account.

• Miscellaneous expense

• Selling expense

• Freight out

• Freight in

is the transportation cost associated with the delivery of goods from a supplier to its customers.

• Freight in

• Selling expense

• Freight out

• Miscellaneous expense

Expenses that are directly related to the main purpose of a merchandising business which is the sale and the delivery of merchandise

• Interest expense

• Selling expenses

• Other Expenses and Losses

• Miscellanous expense

The balances of these accounts are transferred to the capital account thus their balances beocme zero at the end of the accounting period

• Expenses

• Temporary or nominal

• Income and Expenses

• Income

is the total amount of revenue that the company was able to generate from selling products

• Owner's equity

• Net income

• Revenue

• Sales

refers to a transaction that increases assets and/ or decreases liabilities leading to increase in equity resulting from the operations of the buisness and not from the owner's contribution.

• Income

• Revenue

• Sales

• Net income

A statement that provides information as to the financial performance of the company by computing the net income or net lost of the entity

• Statement of the Comprehensive Income

• Statement of Owner's Equity

• Statement of Cash Flow

• Statement of Financial note

All revenues are listed down in one section while all expenses are listed in another

• Multi-step SCI

• Single-step SCI

several steps are needed in order to arrive at the company's net income

• Multi-step

• Single-Step

Thise statement which includes the amounts of the company's total assets,liabilities and owner's equity.

• Statement of Cash flow

• Statement of Comprehensive Income

• Statement of Financial Position

• Statement of Financial Notes