cfa fra #2 financial statement mechanics
TRANSCRIPT
- 1. Rapid Finance
- 2. Rapid Finance
- 3. Financial Statement Elements Definition of Assets, Liabilities and Equity Assets and Liabilities can be long term,short term. Equity has contributed capital, retainedearnings, treasury shares etc. Rapid Finance
- 4. Accounting Equation Assets = Liabilities + Owners Equity Owners Equity = Contributed Capital +Retained Earnings. Retained Earning = Beginning RetainedEarning + Net Income earned Dividend Assets = liabilities + Contributed Capital+ Beginning Retained Earning + NetIncome earned Dividend Rapid Finance
- 5. Accounting Process Start a telephone company with $10,000 I buy furniture, buy cables and telephone boxes Sell the inventory The Year Ends Check Article For More Details Rapid Finance
- 6. Accrual Process Of Accounting Unearned Revenue, cash comes first, a liability iscreated. Accrued Revenue, cash comes later, an asset iscreated. Prepaid Expense, cash paid first, an asset iscreated. Accrued Expense, cash comes later, a liability iscreated.Rapid Finance
- 7. Financial Statements in Security Analysis Considerable Judgment Is Involved Misrepresentation Rapid Finance
- 8. By Rapid FinanceRapid Finance