Balance Sheet A L E snapshot of current date Assets Current cash receivables inventory Total current assets Long Term equipment other Total Liabilities Current A P accrued exp Long Term notes payable Total Equity common stock retained earnings Total Stockholders Equity A L Total Liabilities Stockholders Equity A Statement Cash Flows Operating Investing Financing Increase Decrease in cash Liabilities A P Notes Pay Accrued Liabilities Debits Increase Assets Expenses Dividends Credit Decrease Credits Increase Assets Liabilities Expenses Common Stock Dividends Retained Earnings Revenues A L E L A E E A L Income Statement tells you how well or bad the company is doing for specific period Revenues Expenses Net Income Loss Book Side Bank collections EFT payment service charge interest revenue NSF checks cost of printed checks book errors EFT receipt Entity org stands as own economic unit Continuity quitting going out of business Historical assets recorded on date of purchase Stable Monetary Unit ignore inflation End of period adjustments Deferrals paid or received cash in advance no has to recognize used or earned part of item Accrual expense or rev occurs bus pays or receives cash Stockholders Depreciation allocation of cast of asset to Equity Retained expense over useful life Earnings Net Income Dividends End Debits Decrease Retained Liabilities Earnings Common Stock Retained Earnings Revenues Stockholders Equity Common stock Retained Earnings Dividends Closing the Books Always close with retained earnings Revenues expenses dividends to 0 Temp closed revenue expense dividend Perm not closed asset liability equity Bank Side Assets Cash A R Notes Rec Deposits in transit Inventory outstanding Prepaid Exp checks bank Land Buildings errors Equipment Liabilities A P Salaries Pay Accrued Liabilities Short Term Notes Pay Current Portion long term debt Mortgages payable Long Term Notes Pay Misappropriation of assets fraud committed by employee Fraudulent financial reporting committed by company managers make misleading book entries
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