ACCT1501 Study Guide - Final Guide: Cash Flow Statement, General Ledger, Trial Balance
Document Summary
Chapter 1 introduction to financial accounting & the key financial statements. Chapter 2 measuring & evaluating financial position & performance. Balance sheet financial position at a point of time: assets & liabilities: definition and classification, accounting equation: a = l + se. Intangible assets (licenses, goodwill: assets are either. Current expect to realise the benefits in the next 12 months from the balance sheet date. Non-current realise benefits over a long period. Provisions: liabilities also have to be classified as current or non-current. Current liabilities are those that will be paid off within one year of the balance sheet date. Non-current liabilities will remain liabilities for at least the next year. Income statement financial performance over a period of time: revenues and expenses, gross profit, net profit. Connection between balance sheet and income statement: retained profits: Plus net profit (revenues expenses) for the period. Note: dividends are not expenses: capitalise vs expense.
