Income statement accounts

Accumulated Depreciation is a long-term contra asset account (an asset account with a credit balance) that is reported on the balance sheet under the heading Property, Plant, and Equipment. An assumption that determines the order in which costs should flow out of a balance sheet account (e.g. Inventory, Investments, Treasury Stock) when the item is…

3 4 Statement of Income and Comprehensive Income Intermediate Financial Accounting 1

Go on until you are done with all identified non-cash adjustments from statement of total comprehensive income. The rationale behind this step is that each change in the balance sheet has also some impact on the cash flow statement—and if not (when movement in balance sheet is fully a non-cash item), it will be adjusted…