IA1-financial statements

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IA1-financial statements
2014-10-24 09:49:01
IA1 financial statements

IA1-financial statements
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  1. Return on equity =

    NI / Asset * Asset/Equity, ie ROA * leverage

  2. Non-Current Assets Generally consists of:

    Long-term Investments , Property, Plant, and Equipment, Intangibles Assets, Other Assets

  3. Equity Generally consists of:
    share capital, share premium, treasury share, retained earnings, accumulated other comprehensive income, minority interest
  4. Current Assets Generally consists of:

    inventories, receivables, prepaid expenese, Short term investment, cash and cash equivalents

  5. cash and cash equivalents Generally consists of:

    bank(overdrafts), petty cash, restricted cash

  6. classification - Securities(bonds, ordinary shares, or long-term notes).

    Long-term Investments, Non-Current Assets

  7. classification - Tangible assetsnot currently used in operations (land held for speculation).

    Long-term Investments, Non-Current Assets

  8. classification - Special funds(sinking fund, pension fund, or plant expansion fund

    Long-term Investments, Non-Current Assets

  9. classification - Non-consolidated subsidiariesor associated companies.

    Long-term Investments, Non-Current Assets

  10. classification - land, buildings, machinery, furniture, tools, and wasting resources (minerals).

    Property, Plant, and Equipment, Non-Current Assets

  11. classification - Patents, copyrights, franchises, goodwill, trademarks, trade names, and customer lists

    Intangibles Assets, Non-Current Assets

  12. classification - Long-term prepaid expenses, Non-current receivables , Assets in special funds, Property held for sale, Restricted cash or securities

    Other Assets , Non-Current Assets

  13. classification - possible lawsuit settlement fee

    non-current liabilities

  14. current liabilities generally consist of

    payables due in one year, unearned revenue

  15. JE for Declared a cash dividend

    Dr Retained earnings Cr Dividend Payable

  16. JE for Convert a long-term liability of $80,000 into ordinary shares.
    Dr Bonds Payable Cr Common shares
  17. Factos affect Retained earnings

    Net income and dividend

  18. treasury stock deducts from common shares, its normal balance is


  19. JE for recognizing depreciation expense

    Dr Depn expense Cr Accumulated depn

  20. JE for closing revenue account

    Dr Service revenue Cr Income Summary

  21. JE for closing expense account

    Dr Income Summary Cr (the list of expenses)

  22. JE for closing net income

    Dr Income Summary Cr Retained Earnings

  23. JE for closing dividend

    Dr Retained Earnings Cr Dividends

  24. presentation of income statement

    Net sales, COGS>Gross profit, selling expense, admin or general expense, other income and expenses(including interest revenue)>income from operation, interest expense>income before tax, income tax>income from continuing operation, income from discontinued operation(gain/loss on disposal + income from operations, net of tax)>net income --minority interest, EPS; net income, other comprehensive income>comprehensive income

  25. contra-accounts shown in balance sheet

    accumulated depn and allowance for doubtful accounts

  26. income from operation =

    (revenue - COGS)-SGA+other income and expenses

  27. income before tax=

    income from operation - finance cost

  28. income from continuing operation

    income before tax-income tax

  29. EPS -formula

    (NI-preference dividends-NI allocated to minority interest)/Weighted average number of ordinary shares

  30. what causes change in RE?
    net income, adjustment due to errors in prior peroid, dividends, adjustment due to change in principals
  31. JE for Corrections of overstating accounts receivable and sales revenue in prior periods

    Cr Retained earnings Dr Account receivable

  32. Other Comprehensive Income
    Unrealized gains and losses on available-forsale securities.

    Translation gains and losses on foreign currency