1st Bac - Main Accounts´ Management in Accounting

 For a small corporation, COAs might include these sub-accounts under the Assets account:

  • Cash
  • Savings account
  • Petty cash balance
  • Accounts receivable
  • Undeposited funds
  • Inventory assets
  • Prepaid insurance
  • Vehicles
  • Buildings

Liabilities account may have sub-accounts, such as:

  • The company credit card
  • Accrued liabilities
  • Accounts payable
  • Payroll liabilities
  • Notes payable
Shareholders' equity can be broken down into the following accounts:
  • Common stock
  • Preferred stock
  • Retained earnings

What is an income statement? (Profits and Loss Statement or Earnings Statement)

The income statement is one of three important financial statements used to report the financial results of a company during a particular accounting period, the other two key statements being the balance sheet and the cash flow statement. 

 

Net Income = (Revenue + Gains) – (Expenses + Losses)

 ABC Company Income Statement for year 2020

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