ACCT 3001 Chapter : Chapter 4 Summary
Document Summary
Ex: microsoft experience increases in value due to brand recognition, customer service and product quality: income is affected by the accounting methods employed. Chapter 4 income statement and related info: format of the income statement, elements of the income statement, revenues inflows of assets or settlements of its liabilities that constitute the entity"s ongoing major or central operations. Examples of revenue accounts: sales, fee revenue, interest revenue, dividend revenue, rent revenue, expenses outflows or other using-up of assets or incurrences of liabilities that constitute the entity"s ongoing major or central operations. Expense accounts: cost of goods sold, depreciation expense, interest expense, rent expense, salary expense, gains increases in equity (net assets) from peripheral or incidental transactions, losses - decreases in equity (net assets) from peripheral or incidental transactions. Gains and losses can result from: sale of investments or plant assets, settlement of liabilities, write-offs of assets, single step income statement, the single-step statement consists of just two groupings:
