em up What is your worth List top 10 most valuable things you own and their approximate value Do you have any debts List them too 2 FINANCIAL REPORTS 4 BASIC FINANCIAL REPORTS ID: 580980
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Slide1
1
.
List ‘
em
upSlide2
What is your “worth?”
List top 10 most valuable ($$) things you own and their approximate value.
Do you have any debts? List them, too!Slide3
2.
FINANCIAL REPORTSSlide4
4 BASIC
FINANCIAL REPORTS
Income statementBalance sheetStatement of cash flows
Statement of retained earningsSlide5
INCOME STATEMENT
Presents the revenues, expenses, and profits/losses generated during the reporting period
Considered the most important financial statementSlide6
INCOME STATEMENT
Revenue
: the income generated by sale of goods/services (money earned)
Expenses: the
cost in an attempt to generate revenue (money spent)Profit/loss:Profit: Revenue > ExpenseLoss: Revenue < ExpenseSlide7
STATEMENT OF CASH FLOWS
Presents inflow and outflow of cash during the reporting periodSlide8
STATEMENT OF RETAINED EARNINGS
Presents changes in equity during the reporting periodSlide9
BALANCE SHEET
Presents the assets, liabilities, and equity as of the reporting date.Slide10
3
.
BALANCE SHEETSlide11
Balance Sheet
It is a financial report that lists assets, liabilities and owner’s equity. It shows the financial position of a business.Slide12
ASSET
Things that you
own.Slide13
CHRIS TURNER’S FINANCIAL POSITION
Cash $55
Owed to Dad $200Owed to Philip $80Skip equipment $300Bank balance $215.50
Library fines $12.50Bicycle $185
Stereo $250
Cash $55
Owed to Dad $200
Owed to Philip $80
Skip equipment $300
Bank balance $215.50
Library fines $12.50
Bicycle $185
Stereo $250
Total Assets: $1005.50Slide14
LIABILITIES
Things that you
owe.Slide15
CHRIS TURNER’S FINANCIAL POSITION
Cash
$ 55Skip equipment 300Bank balance
215.50Bicycle 185
Stereo 250Total Assets $1005.50
Owed to Dad
$
200
Owed to Philip
80
Library fines
12.50
Total Liabilities $292.50Slide16
OWNER’S EQUITY
The difference between assets and liabilities
Also called capital, equity
, and net worthSlide17
FUNDAMENTAL ACCOUNTING EQUATION
A – L = OE
A = L + OESlide18
CHRIS TURNER’S FINANCIAL POSITION
Cash
$ 55Skip equipment 300Bank balance
215.50Bicycle 185
Stereo 250Total Assets $1005.50
Owed to Dad
$
200
Owed to Philip
80
Library fines
12.50
Total Liabilities $292.50Slide19
FUNDAMENTAL ACCOUNTING EQUATION
AND
CHRIS TURNERA
1005.50
292.50
-
L
=
OE
713.00