Basic Accounting Lesson 2

what is the basic purpose of the financial statement

• to provide information that is useful in making economic decision

• to balance a sheet or statement position

• report the changes in owners equity

what is financial statement (3 correct statements)

• structured representation of an entity's financial position and results of operations

• income statement and comprehensive income

• the end product of accounting process

• narrative disclosures and other information required by the standards

• how were resources generated and performed during certain period

choose 3 kinds of financial statements

• financial position

• operation

• profit and loss

• liabilities

• changes in equity

choose 2 kinds of financial statements

• expenses

• operation

• cash flows

• liabilities

• notes/notes

statement of financial position

• balance sheet reports of assets, liabilities, and owners equity at specific date

• disclosures and other financial statements

statement of profit and loss (2 answers)

• cash and cash equivalents

• income and expenses

• income statement / comprehensive income

statement of changes in equity

• reports the owners' equity for a specific period of time

• balance sheet

statement of cash flows

• cash and cash equivalents generated during the period

• reports of income and expenses

note/notes to financial statements

• narrative disclosures and other information that were not presented on the financial statements

• comprehensive income statements

elements of financial statements