Sample Financial Statements Boufford, CA（财务报表Boufford样本,CA）.pdfVIP

Understanding Basic Financial Statements During the accounting cycle, the accounting system is used to track, organize and record the financial transactions of an organization. At the close of each period, the information is used to prepare the financial statements, which are usually composed of a balance sheet (statement of financial position); income statement (statement of income and expenses); statement of retained earnings (owners’ equity); and a statement of cash flow. A sample set of financial statements) is shown below. Financial statements prepared by a Chartered Accountant with a Review Engagement Report or Audit Opinion attached, are prepared (unless noted otherwise) according to Canadian generally accepted accounting principles, or GAAP. Financial statements that are only compiled or that have a Notice to Reader attached, are not necessarily prepared according to GAAP. Balance Sheet The balance sheet is based on the equation: assets = liabilities + owners equity. It indicates everything the company owns (assets), everything the company owes to creditors (liabilities) and the value of the ownership stake in the company (shareholders equity, or capital). The balance sheet date is the ending date of the period or year, and is a continuation of the amounts recorded since the inception of the company or organization. The balance sheet is a snapshot of the financial position of the company at the balance sheet date and shows the accumulated balance of the accounts. Assets and liabilities are separated between current and long-term, where current items are those items, which will be realized or paid, within one year of the balance sheet date. Typical current assets are cash, prepaid expenses, accounts receivable and inventory. Income Statement An income statement is a type of summary flow report that lists and categorizes the various revenues and expenses that result from operations during a given period - a