Book notes - expense, interest expense Statement of...

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Financial Accounting Chapter 1 Notes Financial Statement Purpose Structure Examples of Content Balance Sheet Reports the financial position (economic resources of sources of financing) of an accounting entity at a point in time Assets = Liabilities + Stockholders equity Cash, accounts receivable, plant and equipment, notes payable, contributed capital Assets = economic resources owned by company Liabilities = company’s debts or obligations Stockholders equity = indicates the amount of financing provided by owners of the business and earnings Income statement Reports the accountant’s primary measure of economic performance during the accounting period Revenues – expenses = net income Sales revenue, cost of goods sold, selling
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Unformatted text preview: expense, interest expense Statement of retained earnings Reports the way the net income and the distribution of dividends affected the financial position of the Beginning retained earnings + net income Net income is taken from the income statement; dividends are distributions to company during the accounting period dividends = ending RE stockholders Statement of cash flows Reports inflows (receipts) and outflows (payments) of cash during the accounting period in the categories operating, investing, and financing +/- CFO +/- CFI +/- CFF = change in cash Cash must be collected from customers, cash paid to suppliers, cash paid to purchase equipment, cash borrowed from banks...
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Book notes - expense, interest expense Statement of...

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