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1. Cost of goods sold - Cost of goods manufactured - Ending inventory of finished goods
2. A balance sheet shows the results of operations for a period of time.
3. An income statement shows the financial position of a business as of a certain date.
4. The proceeds from issuance of shares of stock are credited to Sales.
5. Treasury shares are shares of stock previously issued by a corporation and subsequently reacquired but not cancelled.
6. Accounting is the language of business.
7. The basic accounting equation is: Assets - Liabilities. Equity
8. Examples of assets are land, buildings, cash, and unearned rent income.
9. It is advisable for everybody to have some knowledge of accounting regardless of the kind of undertaking he has
10. Each individual may try to improve his own 'balance sheet".
11. Income and withdrawals increases owners' equity.
12. Corporate and partnership earnings are closed to retained Earnings account.
13. In a manufacturing firm, raw materials are converted into finished goods.
14. The statement of cash flows is a statement of sources and applications of funds and shows the cash balance at the end of the period
15. Aside from the annual financial statements, other accounting reports are also prepared as often desired by the management.

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