Accounting 201
Accounts Receivable
the amount the company expects to collect from previous credit sales
Unit of measure concept
the idea that a company should report its financial results on its financial statements using a single monetary unit, such as the US dollar
the amount of cash reported on the balance sheet is _____ the ending cash balance reported on the statement of cash flows
the same as
the heading of an income statement should include:
the title "Income Statement" the accounting period covered by the statement the name of the business
Companies typically prepare ____ financial statements each accounting period?
4
Ledger
A collection of record that summarizes, for each account, the effects of the transactions entered into the journal
Journals
A record of each day's transactions
Expense Recongnition Principle
Companies recognize expenses when the work (service) or the product actually contributes to revenue.
What is found on both the retained earnings statement and the balance sheet?
Ending retained earnings
What is found on both the income statement and the statement of retained earnings?
Net income