Professional Documents
Culture Documents
TO
Assets- Assets are resources controlled by the entity as a result of past transactions which
future economic benefits are expected to flow the entity. May be tangible or in the form of
claims and rights. What you OWN
Liabilities- debts or obligations of the business. paid in cash or non-cash assets or settled
by rendering some services. What you OWE
Owners Equity (Capital) - residual claim of owner in assets of the business after
satisfying the claims of the creditors. What you are WORTH
*INCOME STATEMENT
-financial statement that presents the Revenues (INCOME), Expense, Net Income/Net
Loss in a given period of time. Determines whether there is a Net Loss or Net Income
Parts of SoCiEty
Heading- composed of NAME of Business entity, KIND of financial statement prepared
,PERIOD covered by the financial statement
Body-presents the beginning and ending capital balance, additional investment, net income
or loss, withdrawal by owner.