UGBA 102A Study Guide - Final Guide: Accrual, Net Income, Income Statement
9 Sep 2019
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Chapter 12 homework: page 633 q 1,6; page 633-634 mc 4,6; page 636 e12-1; page 646 p12-1. Q1: the income statement is made on an accrual basis and reports revenues earned and expenses incurred during a time period. The balance sheet reports the assets, liabilities, and equity of a business during a particular time point. The statement of cash flows reports cash receipts and cash payments of a business in terms of three business activities: operating, investing, and financing. Q6: depreciation does not cause an inflow of cash because depreciation expense is added to net income to adjust for the effects of a noncash expense that was deducted in determining net income. Proceeds from issuance of common stock to employees. [change in] accounts payable and accrued expenses: f, f, o, f, o, na cash collections from customers, f, o, i, o. Adjustments to reconcile net income to net cash provided by operating activities.
