Balance Sheet

A balance sheet is a financial statement that shows the financial position of a company. It shows company assets, liabilities, and equity. The balance sheet is a snapshot of what the company owns and owes on a specific date. The balance sheet is one of the core financial statements. The other financial statements are the […]

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Income Statement

The income statement shows the performance of a company over a period. The format is revenue minus expenses. If revenues are higher, the company has earned a net profit or net income. If the expenses are higher, the company has earned a net loss. The income statement is for a period of time. It can

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Accounting Information System

The accounting information system records transactions and summarizes the results. The goal of accounting is to issue financial statements. The accounting system records transactions and prepares financial statements. Chapter 3: Accounting Information System This is Intermediate Accounting Chapter 3. For more Intermediate Accounting topics, see Intermediate Accounting Study Guide. Debits and Credits Double-entry accounting is the

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Expense is a cost to operate a business to produce revenue. In accounting, an expense occurs when an asset is used. This could include a cash outflow or consuming an asset. What is an expense? Expenses are one of the five types of accounts in the accounting system. All expenses appear on the income statement.

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What is Revenue? Revenue is income from selling a product or service. A company earns revenue when it receives an asset for selling to a customer. The asset could be cash, accounts receivable, or other assets. Revenues are also called sales. Revenue goes on the company’s income statement. Total revenue is called the top line

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