1. Introduction to Accounting Preparing for a User’s Perspective
What are the general-purpose financial statements and what are their standard equations?
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store

2. Statement of Cash Flows
General-Purpose Financial Statements
Names
Equations
Balance Sheet
Assets = Liabilities + Equity
Statement of Shareholder Equity
Beg. Equity + Adds – Subs = End. Equity
Income Statement
Revenues – Expenses = Net Income
Statement of Cash Flows
Op. Cash Flows + Invest Cash Flows + Finance Cash Flows + Beg. Cash = End. Cash
Footnote disclosures

3. Statement of Cash Flows
What are the names of the four general-purpose financial statements?
Names
Balance Sheet
SEC
Edgar
Statement of Shareholder Equity
Income Statement
Statement of Cash Flows
Public Companies
Prepare
Have audited
Submit
Footnote disclosures

4. How resource position was financed
1) Balance Sheet
Statement of Financial Position
Resources =
Claims
Assets =
Liabilities +
Equity
Resource position
How resource position was financed =

5. 2) Statement of Shareholder Equity
Assets =
Liabilities +
Equity
Beginning Shareholder Equity
+ Additions to Shareholder Equity
- Subtractions from Shareholder Equity
= Ending Shareholder Equity

6. 2) Statement of Shareholder Equity
Statement of Stockholder Equity
FASB ASC Section
Stock = Shares
Stock = Inventory

7. 2) Statement of Shareholder Equity
Assets =
Liabilities +
Equity
Beginning Shareholder Equity
+ Capital Contributions
+ Additions to Shareholder Equity
+ Net Income
(Internally generated capital)
- Subtractions from Shareholder Equity
- Capital Distributions
- Dividends
= Ending Shareholder Equity

8. 2) Statement of Shareholder Equity
ABC Co Statement of Retained Earnings
For the year ended 12/31/X3
Equity
Beginning Retained Earnings
+ Net Income or – Net Loss
Capital Contributions
Retained Earnings
- Dividends
= Ending Retained Earnings

9. 3) Income Statement ABC Co Income Statement
Statement of Comprehensive Income
Statement of Operations
ABC Co Income Statement
For the year ended 12/31/X3
P&L Account
Revenues
- Expenses
= Net Income

10. 4) Statement of Cash Flows
Begin. Cash
+ or - Cash Flows
= End. Cash
ABC Company
Statement of Cash Flows
For the year ended 12/31/X3
1/1/X3
12/31/X3
Cash inflows
Operating activities
Investing activities
Financing activities
= Change in cash
Cash balance
+ Beginning cash
= Ending cash
Cash outflows

11. Statement of Cash Flows
General-Purpose Financial Statements
Names
Equations
Balance Sheet
Assets = Liabilities + Equity
Statement of Shareholder Equity
Beg. Equity + Adds – Subs = End. Equity
Income Statement
Revenues – Expenses = Net Income
Statement of Cash Flows
Op. Cash Flows + Invest Cash Flows + Finance Cash Flows + Beg. Cash = End. Cash
Footnote disclosures

12. Introduction to Accounting Preparing for a User’s Perspective
What are the general-purpose financial statements and what are their standard equations?
Debits and Credits Trainer
By Kevin C. Kimball, CPA
with support from
Free Jan. 2014
Available on the Google Play Store