Generally Accepted Accounting Principles
in the United States

U.S. GAAP Codification   Accounting Topics

Financial Statements
 

Components of Financial Statements

Financial Statements
   FASB Statement of Financial Accounting Concepts (SFAC) No. 5
       "Recognition and Measurement in Financial Statements of Business Enterprises"
        Issued: December 1984.
 
Statement of Financial Accounting Concepts (SFAC) No. 5, Para. 13
A full set of financial statements for a period should show:
  
Financial position at the end of the period
  
Earnings (net income) for the period
  
Comprehensive income (total nonowner changes in equity) for the period
  
Cash flows during the period
  
Investments by and distributions to owners during the period
 
Statement of Financial Accounting Concepts (SFAC) No. 5, Para. 39
Comprehensive income is a measure of the effects of transactions and events on an equity, including all recognized changes in equity (net assets) of the entity, except the investments by owners and distributions to owners.
 
Primary Financial Statements
   Balance Sheet:  Reports the financial position at the end of the period.
  
Income Statement:  Reports the results of operations for the period.
  
Statement of Cash Flows:  Reports cash inflows and outflows during the period.
  
Statement of Stockholders' Equity:  Reports the changes in stockholders' equity during the period.
 
Components of Balance Sheet
   Assets:  Represents future economic benefits.
  
Liabilities:   Represents future economic sacrifices.
  
Stockholders' Equity:  Represents the residual portion of the assets after subtracting liabilities.
                                          (Stockholders' Equity = Assets - Liabilities)
   Accounting Equation
          Assets = Liabilities + Stockholders' Equity
   Examples of Asset Accounts
   Examples of Liability Accounts
   Examples of Stockholders' Equity Accounts
 
Components of Income Statement
   Revenues
  
Expenses
  
Net Income = Revenues - Expenses
   Examples of Revenue and Gain Accounts
   Examples of Expense and Loss Accounts
 
Components of the Statement of Cash Flows
   Cash Flows from Operating Activities
   Cash Flows from Investing Activities
   Cash Flows from Financing Activities
   Examples of Cash Flows from Operating Activities Section
   Examples of Cash Flows from Investing Activities Section
   Examples of Cash Flows from Financing Activities Section
 
Components of the Statement of Stockholders' Equity
   Common Stock
   Preferred Stock
   Additional Paid-in Capital (Paid-in capital in excess of par value)
   Retained Earnings
  











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