文档介绍：3 The Balance Sheet and Statement of Changes in Stockholders’ Equity
Accounting School · Zhongnan University of Economics & Law
ntermediate Accounting
I
中级会计学
Balance Sheet 12/31/X0
Cash $ 80,000
Other 4,550,000
Total $4,630,000
Liabilities $2,970,000
Stock 900,000
R/E 760,000
Total $4,630,000
Statement of Cash Flows
Cash From Op $ 973,000
Cash From Inv (1,188,000)
Cash From Fin 245, Increase $ 30,000
Beg. Cash 80,000
End. Cash $ 110,000
Statement of
Retained Earnings
R/E 12/31/X0 $ 760, e 864,600
Dividends (400,000)
R/E 12/31/X1 $1,224,600
Revenues $12,443,000
Expenses 11,578, e $ 864,600
e Statement
Cash $ 110,000
Other 4,975,000
Total $5,085,000
Liabilities $2,860,400
Stock 1,000,000
R/E 1,224,600
Total $5,085,000
Balance Sheet 12/31/X1
1. Interrelationship of financial statements
Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity
2. Elements of the Balance Sheet
An item of information to be recognized as an element (. formally recorded and reported in the body of the financial statements), an item must
(a) meet the definition of an element as specified in FASB Statement of Concepts No. 6
(b) be measurable
(c) be relevant, and
(d) be reliable.
Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity
Elements of the Balance Sheet — Assets
Assets
Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events
The inclusion of “probable” acknowledges that accounting is not an exact science.
Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholders’ Equity
Elements of the Balance Sheet — Assets
Assets
Probable future economic benefit obtained or controlled by a particular entity as a result of past transactions or events
The primary purpose of the balance sheet is to help forecast the future.
Intermediate Accounting 3 The Balance Sheet and Statement of Changes in Stockholde