Services

It is generally speaking a mini tax return without a cash flow statement. Financial statements are written records that convey the business activities and the financial performance of a company.

Financial statements include:

• Balance sheet – provides an overview of assets, liabilities, and stockholders’ equity as a snapshot in time.
• Income statement – focuses on a company’s revenues and expenses during a particular period. Once expenses are subtracted from revenues, the statement produces a company’s profit figure called net income.
• Cash flow statement – measures how well a company generates cash to pay its debt obligations, fund its operating expenses, and fund investments.

The balance sheet provides an overview of assets, liabilities, and stockholders’ equity as a snapshot in time.

Cash flow statement – measures how well a company generates cash to pay its debt obligations, fund its operating expenses, and fund investments.

A general ledger account is an account or record used to sort, store and summarize a company’s transactions. These accounts are arranged in the general ledger (and in the chart of accounts) with the balance sheet accounts appearing first followed by the income statement accounts.

Some of the more common balance sheet accounts and how they are further arranged in the general ledger include:
• asset accounts such as Cash, Accounts Receivable, Inventory, Investments, Land, and Equipment
• liability accounts including Notes Payable, Accounts Payable, Accrued Expenses Payable, and Customer Deposits
• stockholders’ equity accounts such as Common Stock, Retained Earnings, Treasury Stock, and Accumulated Other Comprehensive Income

Some general ledger accounts can become summary records and will be referred to as control accounts. 

Examples of General Ledger Control Accounts
A common example of a general ledger account that can become a control account is Accounts Receivable. The summary amounts are found in the Accounts Receivable control account and the details for each customer’s credit activity will be contained in the Accounts Receivable subsidiary ledger. Other general ledger accounts that may become control accounts include Inventory, Equipment, and Accounts Payable.