Accounting information is communicated in the form of financial statements. Financial statements include the following: Balance Sheet (Statement of Financial Position) Income Statement (Statement of
Category: Financial Accounting Review
The elements of balance sheet are assets, liabilities and equity. The elements of income statement are revenues and expenses. Assets Assets represent the items that
Three common forms of business organizations are sole proprietorship, partnership and corporation. Sole proprietorship is owned and managed by one person. Partnership has more than
Business activities are classified into operating, investing and financing activities. Operating activities Operating activities include the following transactions: Issuance of stock Borrowings from a bank
Research and Development (R&D) costs are recognized as an expense during the period. Being recognized as an expense means that such costs are not capitalized