Chapter 14 Flashcards
(23 cards)
_____ is the disclosure of financial results and related information ot management and external stakeholders (investors, customers, regulators) about ow a company is performing over specific period of time
Financial Reporting
In case of listed companies the frequency of financial reporting is ______ and _____
Quarterly and annual
____ is usually considered an end product of Accounting
Financial Reporting
What are the four types of financial statements
- Preparation
- Create Balance Sheet
- Create Income Statement
- Create Cash Flow Statement
Statement of Financial Position is also known as _____
Balance Sheet
Presents the financial position of an entity at a given date
Balance Sheet
Something a business owns or controls (cash, inventory, plant and machinery)
Assets
Something a busines owes to someone (creditors, bank loans)
Liabilities
What the busines owes to its owners. This represent the amount of capial that remains in the business after its assets are used to pay off its outsnading libilities.
Equity
Represents the different between the assets and liabilitie
Equity
Income Statement is also known as _____
Profit and Loss Statement
Reports the company’s financial performance in terms of net profit or loss over a specified period.
Profit and Loss statement or Income Statement
What the business has earned over a period (sales revenue, divident income)
Income
The cost incurred by the business over a period (salaries and wages, depreciation, rental charges)
Expense
Net profit or loss is arrived by deducting expenses from _____
income
____ presents the movement in cash and bank balance over a period.
Cash Flow Statement
Represents the cash flow from primary activities of a business
Operating Activities
Represents cash flow form the purchase and sale of assets other than inventories
Investing Activities
Represents cash flow generated or spent on raising and repaying share capital and debt together wth the payments of interest and dividiends
Financing Activities
Statement of changes in equity is also known as _____
Stateent of retained earnings
____ is the details the movement in owners’ equity over a period.
Statement of retained earnings
Net profit or loss during the period as reported in the _____-
Income statemnet
According to _______, the objective of financial reporting is “to provide information about the financial position, performance and changes in financial position of an enterprise that is useful to a wide range of users in making economic decisions”.
International Accounting Standard Board (IASB)
