The Vest Pocket CPA
Chapter One
Financial Statement Reporting:
The Income Statement
The reporting requirements of the income statement,
balance sheet, statement of changes in cash flows, and
interim reporting guidelines must be carefully examined.
Individuals preparing personal financial statements have
to follow certain unique reporting requirements, as do
those who are accounting for a partnership. Points to
note are:
º Income statement preparation involves proper revenue
and expense recognition. The income statement
format is highlighted along with the earnings per
share computation.
º Balance sheet reporting covers accounting requirements
for the various types of assets, liabilities, and
stockholders' equity.
º The Statement of Cash Flows presents cash receipts
and cash payments classified according to investing,
financing, and operating activities. Disclosure
is also provided for certain noncash investment and
financial transactions. A reconc ... read full excerpt from The Vest Pocket CPA ebook
