Accounting - Types of Statements

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Accounting - Types of Statements
2014-10-13 19:21:07

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  1. What sections are there in an income statement?
    • Revenue
    • Cost of Sales
    • Gross profit
    • Other income
    • Distribution Cost
    • Administration Expenses
    • Other expenses
    • Profit before tax
    • Income tax

    Net profit
  2. What sections are in a balance sheet?

    • Current assets:  Cash, accounts receivable, inventory, Total current assets
    • Non-current assets:  Plant and equipment, busines premises, vehicles, Total non-current assets
    • Current Liabilities: Accounts payable, Bank overdraft, Credit card dept, Tax  Total current liabilities
    • Non-current liabilities: Long term loans

  3. What is  Statement of Financial Position?
    Statement of Financial Position, also known as the Balance Sheet, presents the financial position of an entity at a given date. It is comprised of the following three elements:Assets: Something a business owns or controls (e.g. cash, inventory, plant and machinery, etc)Liabilities: Something a business owes to someone (e.g. creditors, bank loans, etc)Equity: What the business owes to its owners. This represents the amount of capital that remains in the business after its assets are used to pay off its outstanding liabilities. Equity therefore represents the difference between the assets and liabilities.- See more at:
  4. what is an Income Statement?
    Income Statement, also known as the Profit and Loss Statement, reports the company's financial performance in terms of net profit or loss over a specified period. Income Statement is composed of the following two elements:Income: What the business has earned over a period (e.g. sales revenue, dividend income, etc)Expense: The cost incurred by the business over a period (e.g. salaries and wages, depreciation, rental charges, etc)Net profit or loss is arrived by deducting expenses from income.View detailed explanation and Example of Income Statement - See more at:
  5. What is a Cash Flow Statement?
    Cash Flow Statement, presents the movement in cash and bank balances over a period. The movement in cash flows is classified into the following segments:Operating Activities: Represents the cash flow from primary activities of a business.Investing Activities: Represents cash flow from the purchase and sale of assets other than inventories (e.g. purchase of a factory plant)Financing Activities: Represents cash flow generated or spent on raising and repaying share capital and debt together with the payments of interest and dividends.View detailed explanation and Example of Cash Flow Statement - See more at:
  6. What are the sections of a cash flow statement?
    Cash Flows from Operating ActivitiesThis section includes cash flows from the principal revenue generation activities such as sale and purchase of goods and services. Cash flows from operating activities can be computed using two methods. One is theDirect Method and the other Indirect Method.

    Cash Flows from Investing Activities.  Cash flows from investing activities are cash in-flows and out-flows related to activities that are intended to generate income and cash flows in future. This includes cash in-flows and out-flows from sale and purchase of long-term assets.

    Cash Flows from Financing Activities.  Cash flows from financing activities are the cash flows related to transactions with stockholders and creditors such as issuance of share capital, purchase of treasury stock, dividend payments etc.