Overview of Financial Statements (Grade 10 NSC Matric Accounting): Flashcards
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Stakeholders
Stakeholders
People or groups with interest in the business
Two main financial statements
Two main financial statements
Income Statement and Balance Sheet
Income Statement shows
Income Statement shows
Financial performance over a period of time
Balance Sheet shows
Balance Sheet shows
Financial position at a specific point in time
Net Profit occurs when
Net Profit occurs when
Total income is greater than total expenses
Net Loss occurs when
Net Loss occurs when
Total expenses exceed total income
Accounting equation
Accounting equation
(Assets = Owner's Equity + Liabilities)
Income from services rendered
Income from services rendered
Primary income from providing services to customers
Depreciation
Depreciation
Reduction in asset value over time due to wear and tear
Gross operating income
Gross operating income
Total from all operating activities before deducting expenses