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