Ch9 Financial Statements and Concepts

Front

Statement of Cash Flows

Back

Operating, Investing, Financing

Front

Income Statement and Statement of Cash Flows

Back

Report what has happened for a period of time (usually, end of fiscal year)

Front

Balance Sheet

Back

Single point in time (any date)

Front

Bottom Line

Back

Most important amount on the income statement

Front

Revenues

Back

Inflows or other enhancements of assets of an entity or settlements of its liabilities (or combination of both)

Front

Realization

Back

The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or a claim of cash; will result in a cash receipt once fulfilled

Front

Earned

Back

Entity has completed or substantially completed the activities it must perform or to be entitled to the revenue benefits; includes an increase in cash or some other asset and satisfies the liability

Front

Journal Entry for Sales

Back

Dr Cash (A/R), Cr Sales (Service Revenue)

Front

Sales

Back

The revenue of firms that sell purchased or manufactured products

Front

Sales Returns and Allowances

Back

Accounted for separately for internal control and analysis purposes but are subtracted from the gross sales amount to arrive at net sales