Positive Cash Flow, Indicates the company is generating cash from its core business operations., Operating Activities, Cash received from customers., Sections in Statement of Cash Flows, Depreciation activities is NOT a typical section., Accounting Equation, Assets = Liabilities + Equity., Current Asset, Accounts receivable to be collected within one year., Purpose of Statement of Financial Position, To present a snapshot of a company's financial condition at a specific point in time, Arrangement of Assets, In order of liquidity, from most to least liquid., Decreases owner's equity, Net Loss Effect on Owner's Equity, Indirect Method Adjustments, Add back depreciation expense., Ending Inventory, represents the remaining amount of inventory at the end of the period., Corporation, owned by many individuals, Partnership, dissolved through admission, withdrawal, and death of partner, Sole Proprietorship, depending on the desire to continue and the physical life of the owner, Elements of Multi-step, Net sales, Cost of goods sold, Gross profit, Operating expenses, Operating activities, Cash Purchase of Inventory Section.

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