Revise the concepts of the statement of cash flows and complete the table and fill in the
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Topic The Statement of Cash Flows (SCF) Chapter Sixteen Financial Statement Review-Up to this pain in your accounting careet,you have learned bow to prepare the following three financial'statemeins Order Financial Statements Period or Date (1) (2) (3) You will not be surprised to find out that most corporations are also required to prepare a fourth statement known as the (4) Before we learn about the Statement of Cash Flows (SCF) let's refresh our memory of the fira three staterments. Income Statement: • Net Income= minus Revenues of the period are against expenses of the period to determine the results of operations Revenue and Expenses are recorded under the basis of accounting The accrual basis means Revenue is recorded when it is and Expenses are recorded when (when you owe it) whether or not the has been received or paid out. • Thus, the amount of reported does NOT mean the same amount of has been received. The starting number on the Statement of Cash Flows (SCF) method) is the for the year. But remember, accrual basis Net Income does NOT equal cash - therefore the Net Income mumber must be adjusted on the SCE W. What are two generally accepted accounting principles that the Income Statement is based upon? What principle is the statement of cash flows based upon? 121 Topic The Statement of Cash Flows (SCF) Chapter Sixteen Financial Statement Review-Up to this pain in your accounting careet,you have learned bow to prepare the following three financial'statemeins Order Financial Statements Period or Date (1) (2) (3) You will not be surprised to find out that most corporations are also required to prepare a fourth statement known as the (4) Before we learn about the Statement of Cash Flows (SCF) let's refresh our memory of the fira three staterments. Income Statement: • Net Income= minus Revenues of the period are against expenses of the period to determine the results of operations Revenue and Expenses are recorded under the basis of accounting The accrual basis means Revenue is recorded when it is and Expenses are recorded when (when you owe it) whether or not the has been received or paid out. • Thus, the amount of reported does NOT mean the same amount of has been received. The starting number on the Statement of Cash Flows (SCF) method) is the for the year. But remember, accrual basis Net Income does NOT equal cash - therefore the Net Income mumber must be adjusted on the SCE W. What are two generally accepted accounting principles that the Income Statement is based upon? What principle is the statement of cash flows based upon? 121
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Three Financial Statements include Order Particulars Period 1 Income Statement It can cover any peri... View the full answer
Related Book For
Financial Accounting An Integrated Statements Approach
ISBN: 978-0324312119
2nd Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Posted Date:
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