Accounting Notes Accounting (Special Edition) Notes
These notes are specially designed to meet the requirements of the accounting and financial reporting students internationally. These notes are equally relevant for all the regions of the world.
There are many easy and unique features included in the notes to understand and grasp the topic.
Further There are free video links to better understand the topic by the expert tutor.
There are many practice questions to understand how the concept is applied into practical scenarios.
These not...
The following is a more accessible plain text extract of the PDF sample above, taken from our Accounting (Special Edition) Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Introduction to Financial Statements
http://www.youtube.com/watch?feature=player_embedded&v=_2Kltr0SRGU
Definition
Financial reporting is the announcement of financial operations of an entity to its investors & other stakeholders.
In other words
Financial statements are the overall performance of the business revealed in an arranged presentation.
Financial statements include:
Income statement or Statement of comprehensive income
Balance Sheet or Statement of financial position
Cash flow statement or Statement of cash flows
Statement of changes in equity (SOCE)
Notes to the financial statements
Why is it important?
The purpose of financial statements is to deliver information about the financial situation, financial running, and cash flows of an organization that is useful to a broad range of users in their monetary decisions.
Financial statements delivers information about an entity's assets, liabilities, capital, revenues and expenditures, inputs by and dividends to owners and the cash flows
The information in the financial statements are useful for users to make economic decisions like further investment, divestment, predicting future profits and financial health of the business etc.
Lecture Notes
The income statement is a statement that shows whether the company made profit or loss for the year. It shows total sales less all expenses for the year to find net profit or loss for the accounting period.
The balance sheet presents the financial condition of a business at a particular date. The balance sheet is made up of 3 segments: assets, liabilities and capital (equity).
Assets are the resources controlled by an entity from which future economic benefits flow towards an entity.
Liabilities are the obligations of the firm.
The difference between assets and liabilities is known as net assets. The net assets of the entity are also known as owners' equity OR capital
A cash flow statement also known as statement of cash flows, shows the change in cash and cash equivalents of a business under the category of operating, investing and financing activities.
The statement of changes in equity (SOCE) reports the detailed changes in capital (owners' equity) over the accounting period (e.g. one year)
Notes to the financial statement shows extra details which is not shown in above statements, It includes accompanying data such as divisional revenues, details about the long lived assets and their depreciation methods, policies etc. it also shows analysis and dissertation about the...
Buy the full version of these notes or essay plans and more in our Accounting (Special Edition) Notes.
These notes are specially designed to meet the requirements of the accounting and financial reporting students internationally. These notes are equally relevant for all the regions of the world.
There are many easy and unique features included in the notes to understand and grasp the topic.
Further There are free video links to better understand the topic by the expert tutor.
There are many practice questions to understand how the concept is applied into practical scenarios.
These not...
Ask questions 🙋 Get answers 📔 It's simple 👁️👄👁️
Our AI is educated by the highest scoring students across all subjects and schools. Join hundreds of your peers today.
Get Started