Introduction - Survey of financial statements

9 important questions on Introduction - Survey of financial statements

When is the Annual financial statement issued

At the end of a companies business year (Fiscal Year)

What is considered as a fiscal year

A business year of a company this is 12 consecutive months (KF was dit 1 tot 1 Mei)

When are Interim financial statements issued

During the fiscal year (can be at any time)
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What does a Statement of Income show? What information does it show?

  1. Revenue
  2. Expenses

and provides information about the results of operations for a stated period of time only for one business year. Hence it shows profits or losses

What does the Income before fixed charges and income taxes mean

It shows how efficient management and the company is, as the revenues and expenses deducted are all related to business operations
Gross P - Operating Expense = Income before fixed cahrges and income tax

Fixed costs (charges)

Are the charges that are fixed with the company (rental, porperty tax, insurance)

What do Equity Statements reflect

It reflects changes in equity that occurred during an account period

WHat does the Owners statement of Equity reflect

Owners residual claims to the asset of the business any claims to assets that creditors may have. The proprietorship form of business organization.

What are the three Equity selections

  1. Common stock = Number of shares autherized and the number of shares issued
  2. Additional paid-in Capital = Total amount for cash, property and other capital contirbuted by stockholders in excess of the par value of the common stock
  3. Retained earnings = Portion of net income enared by the corporations that is not distributed as dividends but retained in the business

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