Financial Accounting Cheat Sheet

Basic Objectives
To allow better allocations of Capital market Ressources(Useful to those making invest and credit decisions ( Provide info: economic resour, claims and changes

Fundamental Concepts

Relevant - Past, Present, Future Events ( Reliable - Dependable, Reasonably Free Of Error ( Verifiable ( Comparable to other entities ( Consistent over time

Recognition And Measurement Concepts

Economic entity ( Going concern ( Monetary unit ( Periodically

Basic Principles

Historical cost ( Accrual basis (recognize when goods are sold or service rendered) Revenue recognise when realised ( Matching principle ( Full disclosure

Constraints

Cost/Benefit ( Materiality ( Industry practice ( Conservatism

Abbreviations

|B.P. Bond |APIC Additional |
|Payable |PIC |
|C.S. Common |PMR Profit Margin |
|Stock |Ratio |
|CSE Common SE |PV Present Value |
|EOF End of |R.E. Retained |
|Financing |Earnings |
|(Period) |S.H. ShareHolder |
|FV Future Value |S.E. ShareHolder |
|IE Interest |Equity |
|Expense |SYD Sum of the |
|I.S. Income |Years’ Digits |
|Statement |TA Total Assets |
|FS Financial |TAT Total Assets |
|Statements |Turnover |
|LCM Lower Cost &|XA Uncollectable |
|Market |Accounts |
|M.S. Marketable |~A Contra-Asset |
|Securities |(negative) |
|N.I. Net Income |$ |
|PIC Paid In |CASH |
|Capital. | |

Balance sheet

|Assets |Liabilities |
|Current Assets |Current |
|Cash |Liabilities |
|Marketable |Payable (Account,|
|Securities/Stock|Note,Interest, |
|s |Salaries, Income |
|Short Term |Tax) |
|Investment |Advanced From |
|Receivables(Acct|Customer |
|, note,interst) |Rent