Fundamentals of Accountancy, Business, and Management 2 PDF

Fundamentals of Accountancy, Business, and Management 2 STATEMENT OF FINANCIAL POSITION  FINANCIAL STATEMENTS are structured representation of an entity's financial position which is balance sheet and results of its operations which is the statement of performance. Financial statements...

Fundamentals of Accountancy, Business, and Management 2 STATEMENT OF FINANCIAL POSITION  FINANCIAL STATEMENTS are structured representation of an entity's financial position which is balance sheet and results of its operations which is the statement of performance. Financial statements are product of the accounting process. ELEMENTS OF FINANCIAL POSITION ASSETS resources you control that have resulted from past events and can provide you with the future economic benefits LIABILITIES are your present obligations that have resulted from past events and can require you give up resources when settling them. EQUITY means assets minus liabilities. Other terms for equity are capital, net assets, and net worth.  PERMANENT ACCOUNTS their life and usefulness continues throughout the life of the company  CONTRA ASSETS A contra asset account is an asset account where the account balance is expected to be a credit balance. “CONTRA” BECAUSE HAVING A CREDIT BALANCE IN AN ASSET ACCOUNT IS CONTRARY TO THE NORMAL OR EXPECTED DEBIT BALANCE.  TWO FORMS OF STATEMENT OF FINANCIAL POSITION commonly used for internal reporting and is preferred by some businesses because of its simplicity and ease of interpretation. form used for submission to the government agencies and financial institution such as banks.  FAB THANK YOU Business analysis is also useful for increasing profits and helping to achieve business goals and can be used to get to know more about the business from several sides. www.reallygreatsite.com [email protected]