Transcript of Cfa FRA #2 Financial Statement Mechanics
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- 3. Financial Statement Elements Definition of Assets,
Liabilities and Equity Assets and Liabilities can be long
term,short term. Equity has contributed capital, retainedearnings,
treasury shares etc. Rapid Finance
- 4. Accounting Equation Assets = Liabilities + Owners Equity
Owners Equity = Contributed Capital +Retained Earnings. Retained
Earning = Beginning RetainedEarning + Net Income earned Dividend
Assets = liabilities + Contributed Capital+ Beginning Retained
Earning + NetIncome earned Dividend Rapid Finance
- 5. Accounting Process Start a telephone company with $10,000 I
buy furniture, buy cables and telephone boxes Sell the inventory
The Year Ends Check Article For More Details Rapid Finance
- 6. Accrual Process Of Accounting Unearned Revenue, cash comes
first, a liability iscreated. Accrued Revenue, cash comes later, an
asset iscreated. Prepaid Expense, cash paid first, an asset
iscreated. Accrued Expense, cash comes later, a liability
iscreated.Rapid Finance
- 7. Financial Statements in Security Analysis Considerable
Judgment Is Involved Misrepresentation Rapid Finance
- 8. By Rapid FinanceRapid Finance