Financial Statements for a Sole Proprietorship Why It’s Important Financial statements provide the essential financial information necessary for sound management decisions. Financial statements provide information to owners and managers about how the business is changing as a result of operations.
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Financial Statements for a Sole Proprietorship Why It’s Important Financial statements provide the essential financial information necessary for sound.
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Financial Statements for a Sole Proprietorship
Financial Statements for a Sole ProprietorshipWhy It’s Important
Financial statements provide the essential financial information necessary for sound management decisions. Financial statements provide information to owners and managers about how the business is changing as a result of operations.
Why It’s Important
Financial statements provide the essential financial information necessary for sound management decisions. Financial statements provide information to owners and managers about how the business is changing as a result of operations.
The Seventh Step in the Accounting Cycle: Financial Statements
The primary financial statements
prepared for a sole proprietorship are
the income statement and the balance
sheet. A third statement, the statement
of changes in owner’s equity, is also
often prepared.
The Seventh Step in the Accounting Cycle: Financial Statements
The primary financial statements
prepared for a sole proprietorship are
the income statement and the balance
sheet. A third statement, the statement
of changes in owner’s equity, is also
often prepared.
The Income Statement
The income statement reports the net income
or net loss for the period. The income statement
communicates important details about profitability
to a business owner
The Income Statement
The income statement reports the net income
or net loss for the period. The income statement
communicates important details about profitability
to a business owner
The Income Statement with multiple revenue accounts and a Net LossThe Income Statement with multiple revenue accounts and a Net Loss
The Statement of Changes in
Owner’s Equity
One way to evaluate how a business is
performing is by tracking the increase or
decrease in owner’s equity. The statement of
changes in owner’s equity summarizes
changes in the owner’s capital account as a
result of business transactions during the
period.
The Statement of Changes in
Owner’s Equity
One way to evaluate how a business is
performing is by tracking the increase or
decrease in owner’s equity. The statement of
changes in owner’s equity summarizes
changes in the owner’s capital account as a
result of business transactions during the
period.
Preparing The Statement of Changes in Owner’s Equity
The information to prepare this statement is found in three places:
Preparing The Statement of Changes in Owner’s Equity
The information to prepare this statement is found in three places:
the work sheet the work sheet the income statement the income statement the owner’s capital account in the
general ledger
the owner’s capital account in the general ledger
Statement of Changes in Owner’s Equity with Net LossStatement of Changes in Owner’s Equity with Net Loss
Preparing The Statement of Changes in Owner’s EquityPreparing The Statement of Changes in Owner’s Equity