Scribd Logo
Upload

Welcome to Scribd!

  • Basic Aactng Terms: Profit and Loss Account

    Uploaded by

    Mark Johnson Lee
    4 views1 page
    Cost of sales include expenses directly related to items sold, such as purchases. Expenses are other costs not directly tied to sales, like rent. The profit and loss account shows annual operating profits broken into sales, costs, and expenses. The balance sheet reports assets, liabilities, and equity at a point in time. The statement of cash flows reports cash changes from operations, investing, and financing activities. Financial statements include audited reports verified by accountants and interim reports between annual statements.

    Original Description:

    Basic Accounting Terminology

    Original Title

    Basic Acctng Terms

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    Cost of sales include expenses directly related to items sold, such as purchases. Expenses are other costs not directly tied to sales, like rent. The profit and loss account shows annual operating profits broken into sales, costs, and expenses. The balance sheet reports assets, liabilities, and equity at a point in time. The statement of cash flows reports cash changes from operations, investing, and financing activities. Financial statements include audited reports verified by accountants and interim reports between annual statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    4 views1 page

    Basic Aactng Terms: Profit and Loss Account

    Uploaded by

    Mark Johnson Lee
    Cost of sales include expenses directly related to items sold, such as purchases. Expenses are other costs not directly tied to sales, like rent. The profit and loss account shows annual operating profits broken into sales, costs, and expenses. The balance sheet reports assets, liabilities, and equity at a point in time. The statement of cash flows reports cash changes from operations, investing, and financing activities. Financial statements include audited reports verified by accountants and interim reports between annual statements.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    DO NOT SEND/EDIT

    BASIC AACTNG TERMS


    Cathleen Angelica L. Rubio

    Profit and Loss account Cost of Sales


    Þ Whereas the balance sheet shows a Cost of Sales are expenses that can
    snapshot at a point in time of the net worth of be directly attributed to sales items,
    such as purchases of stocks.
    the business, the profit and loss account
    shows the current financial year’s net
    Expenses
    operating profits, broken down into various
    These are all other expenses (other
    sales, cost of sales and expenses ledger than purchases of assets) which
    accounts. cannot be attributed directly to sales
    items, such as rent, electricity or
    advertising.
    Sales
    Sales accounts show all sales made in the period, regardless
    of whether or not money has been received yet, and are shown
    as a credit in the Profit and Loss accounts. Where money has
    not yet been received, the debit is not to cash (as per the CD FINANCIAL STATEMENTS
    example above), but to a Debtors account (money owed from Financial statements are general purpose,
    customer account). external financial statements prepared
    according to generally accepted
    Balance Sheet: reports the amounts of assets, liabilities, and accounting principles. Some terms that
    stockholders’ equity at a specified moment, such as midnight apply to the financial statements include:
    of December 31; also known as the statement of financial
    position. Þ Statement Of Cash Flows:
    reports the changes in cash and
    cash equivalents during a period
    Income Statement: reports revenues, expenses, gains, of time according to three
    losses, and net income during the period of time stated in its activities: operating, investing,
    heading; also known as the statement of operations and as the and financing.
    profit and loss (P&L) statement.

    FINANCIAL STATEMENTS

    FINANCIAL STATEMENTS
    Þ Statement Of Stockholders’ Equity: reports the
    Þ Audited Financial Statements:
    changes in the components of stockholders’ equity,
    independent CPA firm gives
    including net income, other comprehensive income,
    assurance about reasonableness
    dividends, exercise of stock options.
    and compliance with accounting
    principles.
    Þ Interim Financial Statements: issued between the
    annual financial statements, e.g. quarterly
    Þ Financial Reporting: includes
    financial statements, annual and
    quarterly reports to SEC and
    stockholders, press releases and
    other financial reports.

    You might also like