Baby sam

• Balance Sheet or Statement of Financial Position

  A statement of firm's financial position at a given date
• Assets


  • Are resource controlled by the enterprise as a result of past events that provide future economic benefits expected to flow to the entity
• Current Assets


  Its realizable, intends to sell, use, consume it and within the normal operating cycle
• Non-Current Assets


  Tangible assets held by enterprise to be used in the production of goods and services
• Liabilities


  • Are obligations that have resulted from past events that give up resulted upon settlements
• Current liabilities


  It's a present obligations that can be settled within one year
• Long term liabilities


  These are obligations that can be settled more than one year
• Owner's Equity


  Residual interest in the assets of the enterprise after deducting the liabilities
• Capital


  Sole proprietor
• Cash Flow Statement


  A statement showing how much cash the firm is generating and spending
• Methods of cash flow statement

  • Direct
  • Indirect
• Direct method


  Shows major class of gross cash receipts and gross cash payments
• Indirect method


  Profit or loss is adjusted for the effects of noncash items and changes in operating assets and liabilities
• Components of cash flow statement

  • Operating activities
  • Investing activities
  • Financing activities
• Operating activities


  Normal course of operations (e.g. sales cash received from customer, payment of expenses)
• Investing activities


  Purchase of new assets, sale of old equipment
• CDA = COOPERATIVE DEVELOPMENT AUTHORITY
• SEC = SECURITIES EXCHANGE COMMISSION
• DTI = DEPARTMENT OF TRADE AND INDUSTRY