Studied by 2 peopleTags & Description
sfp
presents the company’s financial position
sfp
financial statement consisting of assets, liabilities, and equity
assets
resources controlled by the entity as a result of past transactions and events from which future economic benefits are expected to flow in the entity
current assets, noncurrent assets
classification of assets
current assets
(classification of assets) cash or cash equivalent
current assets
(classification of assets) the firm intends to hold the assets for the purpose of trading it
current assets
(classification of assets) the firm expects to realize the asset within 12 months
current assets
(classification of assets) the firm expects to realize the asset or intends to see or use it within the entity’s normal operating cycle
noncurrent assets
(classification of assets) assets that do not fall under current assets
liabilities
present financial obligations of the firm from past transactions or events, the payment of which is expected to result in an outflow of economic resources or assets
current liabilities, noncurrent liabilities
classification of liabilities
current liabilities
(classification of liabilities) the firm is expected to pay the liability within its normal operating cycle
current liabilities
(classification of liabilities) the firm holds the liability primarily for the purpose of trading
current liabilities
(classification of liabilities) liability can be paid within 12 months
noncurrent liabilities
(classification of liabilities) liabilities that do not fall under current liabilities
stockholders’ equity
the excess of the firm’s assets over the firm’s liabilities
share capital, reserves, retained earnings
components of stockholders’ equity (3)
share capital
(component of stockholders’ equity) issuance of the company’s own share at their par or stated values
reserves
(component of stockholders’ equity) issuance of the company’s own share above par/stated par or additional paid-in capital/premium on share capital
reserves
(component of stockholders’ equity) various comprehensive income
reserves
(component of stockholders’ equity) revaluation surplus and appropriated retained earnings
retained earnings
(component of stockholders’ equity) accumulated earnings of the company
retained earnings
(component of stockholders’ equity) prior period adjustments for errors
retained earnings
(component of stockholders’ equity) dividends declared/paid
retained earnings
(component of stockholders’ equity) effects of changes in accounting policy and appropriated retained earnings
income statement
presents the results of the firm’s operation or performance for a given time
revenues/income, expenses
elements of income statement (2)
false
(true or false) a business is not required to present the income statement by using functional approach (cost of sales method) or natural approach
functional approach, natural approach
approaches used to present the income statement (2)
functional approach
(approaches in presenting the income statement) follows the function of expenses: (P) cost of sales, (2) selling expenses, (3) administrative expenses; (4) other expenses
natural approach
(approaches in presenting the income statement) all revenue items are clustered and totaled, same with all expenses
natural approach
(approaches in presenting the income statement) the sum of expenses is deducted from the sum of revenues to get the income before tax
sci
consists of recognized gains and losses that are not included in the income statement but are found in the equity section of the SFP, especially the statement of changes in equity
true
(true or false) SCI can be presented separately or as an extension of the income statement
false
(true or false) when SCI is included in the income statement, it will still be called income statement
sre
discloses the results of the current year’s operations
true
(true or false) SRE is not required to be prepared separately because the statement of owners’ equity includes the components of the statement of retained earnings
sce
presents the development or changes that occur in the stockholders’ equity
sce
from which financial statement is this include? total or net comprehensive income
sce
from which financial statement is this include? effects brought about by the changes in accounting policies or correction of errors
sce
from which financial statement is this include? investment transaction of owners and the dividends paid to owners
sce
from which financial statement is this include? the beginning balance of each component in the statement of changes in equity and the movements under them that brought about the ending balances
statement of cash flow
presents the summary of the operating, investing, and financing activities
cash flows
the movement of cash, which either is an inflow of cash pertains to receipts of cash, or cash outflow which means a disbursement of cash
cash flows from operating activities
(classification of cash flows) generation of principal revenue of the firm
cash flows from operating activities
(classification of cash flows) cash sales
cash flows from operating activities
(classification of cash flows) cash receipts from rental fees, service fees, professional fees, legal fees, tuition fees, etc
cash flows from operating activities
(classification of cash flows) cash used to pay salaries, utilities, purchases, and payables
cash flows from operating activities
(classification of cash flows) cash receipts/disbursements from securities kept by the company for dealing or trading
cash flows from investing activities
(classification of cash flows) from purchasing or selling long-term assets and other long-term investments
cash flows from investing activities
(classification of cash flows) cash disbursements used to buy fixed assets
cash flows from investing activities
(classification of cash flows) cash receipts or payments from derivative transactions
cash flows from investing activities
(classification of cash flows) cash receipts or payments from selling/buying of equity securities or shares or debt instruments
cash flows from financing activities
(classification of cash flows) cash inflows or outflows involving its owners (equity financing) and creditors (debt financing)
cash flows from financing activities
(classification of cash flows) cash receipts from the issuance of the company’s ordinary shares and preferred shares of stock
cash flows from financing activities
(classification of cash flows) cash disbursements used to pay the acquisition of treasury shares
cash flows from financing activities
(classification of cash flows) cash receipts from issuing the company’s bond or notes
cash flows from financing activities
(classification of cash flows) cash receipts form short-term or long-term loans payable, bank payables, or mortgage payables
cash flows from financing activities
(classification of cash flows) cash disbursement used to pay bank loans and other forms of borrowing
notes to financial statements
sets of information that cannot be disclosed on the financial statement which may either be quantitative or qualitative in nature
corporate/company information
(component of notes to financial statements) nature of business, the associates or subsidiaries of the company, and the principal activities of the company
basis for preparing the financial statements and the statement of compliance
(component of notes to financial statements) at historical cost or at fair market value in compliance with the philippine financial reporting standards
summary of significant accounting policies
(component of notes to financial statements) used in carrying out the firm’s operations and preparing their financial statements
statement of compliance
(component of notes to financial statements) states that the financial statements of the firm were prepared in compliance with the philippine financial reporting standards
sfp, is, sci, sre, sce, scf, nfs
(7 financial statements discussed) (abbreviations)
Note
Flashcard