tailieunhanh - Guide Accounting For Dummies_3

Tham khảo tài liệu 'guide accounting for dummies_3', tài chính - ngân hàng, kế toán - kiểm toán phục vụ nhu cầu học tập, nghiên cứu và làm việc hiệu quả | 92 Part II Figuring Out Financial Statements Typical Business Inc. Summary of Changes in Assets and Liabilities from Sales and Expenses and Allied Transactions Through Year Ended December 31 2009 Assets Cash 1 515 000 Receivables from credit sales 450 000 Figure 4-2 Cost of unsold products in inventory 725 000 Summary of Amount of expenses paid in advance 75 000 changes in Cost of fixed assets net of depreciation 775 000 assets and liabilities Change in total assets 1 990 000 from sales Liabilities expenses and their Payables for products and things bought on credit 125 000 allied Unpaid expenses 150 000 transactions Income tax payable 25 000 during the Change in liabilities 300 000 year. Net income for year 1 690 000 Note in Figure 4-2 that I use descriptive names for the assets and liabilities instead of the formal account titles that you see in actual financial statements. You can refer to the formal account titles earlier in the chapter see the section Getting Particular about Assets and Liabilities . When explaining the balance sheet in Chapter 5 I stick to the formal titles of the accounts. Other transactions also change the assets liabilities and owners equity of a business such as borrowing money and buying new fixed assets. These nonrevenue and non-expense transactions are reported in the statement of cash flows which I explain in Chapter 6. Reporting Extraordinary Gains and Losses I have a small confession to make The income statement example shown in Figure 4-1 is a sanitized version as compared with actual income statements in external financial reports. If you took the trouble to read 100 income statements you d be surprised at the wide range of things you d find in these statements. But I do know one thing for certain you would discover. Chapter 4 Reporting Revenue Expenses and the Bottom Line 93 Many businesses report unusual extraordinary gains and losses in addition to their usual revenue income and expenses. In these situations the income .