Kế toán, kiểm toán - Chapter six: Financial statements

CHAPTER SIXFinancial Statements 1. Prepare an income statement. 2. Prepare a statement of owner’s equity. 3. Prepare a balance sheet.FINANCIAL STATEMENTSObjectives:3The Accounting PeriodThe period for which results are summarized are known as the accounting period or the fiscal period.4Completion of the Income StatementThe income statement is prepared on accounting paper with two money columns.The income statement heading answers Who, What, and When?The balance will reflect a net income or net loss.5Completion of the Statement of Owner’s EquityThis supplemental statement shows the details of the changes in owner’s equity during the accounting or fiscal period.The heading answers Who, What and When?6Completion of the Balance Sheet (Continued)The balance sheet shows the status of the business on one particular day.A balance sheet may be prepared at any time.The balances are taken from trial balance.7Completion of the Balance Sheet (Continued)The owner’s equity section of the balance sheet shows one figure from the owner’s equity statement.8Accounting TerminologyAccounting periodBalance sheetFinancial statementsFiscal periodIncome statementStatement of owner’s equity9Chapter SummaryThe accounting period is the period of time for which financial results are summarized.Another name for accounting period is the fiscal period.10Chapter Summary (continued)Most of the information used in preparing the financial statements comes from the trial balance, which is taken on the last day of the fiscal period.The income statement summarizes the revenue and expenses for an accounting period.11Chapter Summary(continued)The statement of owner’s equity shows the details of the changes in owner’s equity that occurred during an accounting period.The balance sheet shows the financial position of a business on one particular date.121. Fiscal period is another name for the accounting period.2. The balance sheet shows the status of the business for one particular date. 3. Financial statements are used by owners, managers, and accountants to interpret business activities.Topic QuizAnswer the following true/false questions:TRUETRUETRUE13 Investigating on the InternetSources of information about financial statements can be accessed at most corporate websites. As a research assignment, access a familiar business’ website and report those sources of information that might concern financial statements used in business.14