| operations |
| comment | | "parent_author":"",<br>"parent_permlink":"steemiteducation",<br>"author":"lyxng",<br>"permlink":"accounting-101-financial-statements",<br>"title":"Accounting 101 - Financial Statements",<br>"body":"<html>\n<center>\n<img src=https:\/\/steemitimages.com\/DQmaGrrDPXpWypva8KBU8swdYzokEJF2QBRKsurK7YAhV5u\/profit-improvements.jpg>\n<sup><a href=\"http:\/\/kennedyjames.co.uk\/busines-support\/profit-improvement\">Image Source<\/a><\/sup>\n<\/center>\n<p><br><\/p>\n<h1>Financial Statements<\/h1>\n<p><em>These are the end products of every accounting period or cycle. It is a summary of every accounting information of a company. It is important that we understand the purpose of each for us to be able to supply the correct and relevant information.<\/em><\/p>\n<p>We will use a sample problem to illustrate the different financial statements.<\/p>\n<center><img src=https:\/\/steemitimages.com\/DQma45HyyCQx5QxVbEPCZA7U2tqDYQDqpswfwZ7LynNWhRo\/Prob.JPG><\/center>\n<h2>Income Statement<\/h2>\n<blockquote>An income statement is a report of the company\u2019s revenues and expenses for a period of time. As a result,<br> it presents the company\u2019s net profit or net loss for that period. The income statement presents the revenues first and then the expenses. The difference between the revenue and the expense is the profit or the loss. Net loss occurs when the company\u2019s expenses is larger than the revenues. The profit will then be added to the beginning balance of the owner in the Owner\u2019s Equity Statement.<\/blockquote>\n<center><img src=https:\/\/steemitimages.com\/DQmUyuioGQLqpS4yxriu2cB333Gpg7FmpDKLKiRu3WWq2yi\/%231%20--%20IS.JPG><\/center>\n<p><br><\/p>\n<h2>Owner\u2019s Equity Statement <\/h2>\n<blockquote>This statement reports the changes in the owner\u2019s equity for a given period. The purpose of this statement is to provide an explanation to the increase or decrease in the owner\u2019s equity for that specific period. This statement includes Owner\u2019s investment,<br> net profit and drawings. Note that in the first month of the business,<br> the Owner\u2019s equity is always zero. The end balance will then be presented as the owner\u2019s equity in the balance sheet.<\/blockquote>\n<center><img src=https:\/\/steemitimages.com\/DQmbVBcueXFPk43gs9iDtbsG2GNqSvteE74MVq4Ya11fkjb\/%232%20--%20OES.JPG><\/center>\n<p><br><\/p>\n<h2>Balance Sheet<\/h2>\n<blockquote>This statement shows the amount of assets,<br> liabilities and owner\u2019s equity as of a given date. The amount of the assets should always be equal to the total amount of liabilities and the owner\u2019s capital. The accounts are presented in order of liquidity which means,<br> assets always comes first.<\/blockquote>\n<center><img src=https:\/\/steemitimages.com\/DQmbcLfbYjQDjMU8wpxKtmr9Jo7bKNHDZZuVwggQUX5gswz\/%233%20--%20BS.JPG><\/center>\n<p><br><\/p>\n<h2>Statement of Cash Flows<\/h2>\n<blockquote>This statement shows the increase or decrease of cash in the business in a given period. This includes cash receipts for services rendered and cash expenditures for operations. Note that this must not include revenues and investments made on credit.<\/blockquote>\n<center><img src=https:\/\/steemitimages.com\/DQmSknA3X1WhVvZ1oRxhYrKqenMjvqcEGCrFqSsFuWnEfiy\/%234%20--%20SOCF.JPG><\/center>\n<p><br><\/p>\n<hr \/>\n<p><br><\/p>\n<h2><i>Previous Lessons:<\/i><\/h2>\n<ul>\n <li><h3><a href=\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-the-accounting-process-identify-record-and-communicate\">Accounting 101 \u2013 The Accounting Process: Identify,<br> Record,<br> And Communicate<\/a><\/h3><\/li>\n <li><h3><a href=\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-generally-accepted-accounting-principles-gaap\">Accounting 101 \u2013 Generally Accepted Accounting Principles (GAAP)<\/a><\/h3><\/li>\n <li><h3><a href=\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-the-basic-accounting-equation\">Accounting 101 -- The Basic Accounting Equation<\/a><\/h3><\/li>\n <li><h3><a href=\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-transaction-analysis\">Accounting 101 \u2013 Transaction Analysis<\/a><\/h3><\/li>\n<\/ul>\n<p><br><\/p>\n<hr \/>\n<p><br><\/p>\n<h2><i>References<\/i><\/h2>\n<ul>\n <li>Accounting Principles 12<sup>th<\/sup> Edition <i>(p.21-24)<\/i>,<br> by <i>J.J. Weygandt,<br> P.D. Kimmel,<br> D.E. Kieso<\/i><\/li>\n<\/ul>\n<p><br><\/p>\n<center><img src=https:\/\/steemitimages.com\/DQmQPRBLmhWag36FBxYVNJNKZRUsBbpPeZvm7FVixnWVXhk\/13.png><\/center>\n<p><br><\/p>\n<h3>For any questions,<br> clarifications or violent reactions,<br> please feel free to leave a comment below. :D<\/h3>\n<p><br><\/p>\n<center>\n<h2>Learning is FUN!<\/h2>\n<h1><a href=https:\/\/www.steemit.com\/@steemiteducation\">@SteemitEducation<\/a><\/h1>\n<img src=https:\/\/steemitimages.com\/DQmZCo76MUSeg8WNYUqr9UMGig3kufJWfENY337KfSbpoJC\/17.gif>\n<img src=https:\/\/s19.postimg.org\/3li393j2r\/lyxng.jpg>\n<\/center>\n<p><br><\/p>\n<\/html>",<br>"json_metadata":" \"tags\":[\"steemiteducation\",<br>\"math\",<br>\"finance\",<br>\"steemph\",<br>\"philippines\" ,<br>\"image\":[\"https:\/\/steemitimages.com\/DQmaGrrDPXpWypva8KBU8swdYzokEJF2QBRKsurK7YAhV5u\/profit-improvements.jpg\",<br>\"https:\/\/steemitimages.com\/DQma45HyyCQx5QxVbEPCZA7U2tqDYQDqpswfwZ7LynNWhRo\/Prob.JPG\",<br>\"https:\/\/steemitimages.com\/DQmUyuioGQLqpS4yxriu2cB333Gpg7FmpDKLKiRu3WWq2yi\/%231%20--%20IS.JPG\",<br>\"https:\/\/steemitimages.com\/DQmbVBcueXFPk43gs9iDtbsG2GNqSvteE74MVq4Ya11fkjb\/%232%20--%20OES.JPG\",<br>\"https:\/\/steemitimages.com\/DQmbcLfbYjQDjMU8wpxKtmr9Jo7bKNHDZZuVwggQUX5gswz\/%233%20--%20BS.JPG\",<br>\"https:\/\/steemitimages.com\/DQmSknA3X1WhVvZ1oRxhYrKqenMjvqcEGCrFqSsFuWnEfiy\/%234%20--%20SOCF.JPG\",<br>\"https:\/\/steemitimages.com\/DQmQPRBLmhWag36FBxYVNJNKZRUsBbpPeZvm7FVixnWVXhk\/13.png\",<br>\"https:\/\/steemitimages.com\/DQmZCo76MUSeg8WNYUqr9UMGig3kufJWfENY337KfSbpoJC\/17.gif\",<br>\"https:\/\/s19.postimg.org\/3li393j2r\/lyxng.jpg\" ,<br>\"links\":[\"http:\/\/kennedyjames.co.uk\/busines-support\/profit-improvement\",<br>\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-the-accounting-process-identify-record-and-communicate\",<br>\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-generally-accepted-accounting-principles-gaap\",<br>\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-the-basic-accounting-equation\",<br>\"https:\/\/steemit.com\/steemiteducation\/@lyxng\/accounting-101-transaction-analysis\",<br>\"https:\/\/www.steemit.com\/@steemiteducation\" ,<br>\"app\":\"steemit\/0.1\",<br>\"format\":\"html\" " | | vote | "voter":"lyxng",
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