This document defines key terms related to financial statements and the accounting cycle. It explains that the income statement shows profit or loss and is known as the statement of profit or loss, while the balance sheet shows assets, liabilities and equity and is known as the statement of financial position. It also outlines the major steps in the accounting cycle, from identifying transactions to closing entries and producing a post-closing trial balance.
This document defines key terms related to financial statements and the accounting cycle. It explains that the income statement shows profit or loss and is known as the statement of profit or loss, while the balance sheet shows assets, liabilities and equity and is known as the statement of financial position. It also outlines the major steps in the accounting cycle, from identifying transactions to closing entries and producing a post-closing trial balance.
This document defines key terms related to financial statements and the accounting cycle. It explains that the income statement shows profit or loss and is known as the statement of profit or loss, while the balance sheet shows assets, liabilities and equity and is known as the statement of financial position. It also outlines the major steps in the accounting cycle, from identifying transactions to closing entries and producing a post-closing trial balance.