Lecture02 - Lecture 2 Overview of Financial Statements...

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Lecture 2 Overview of Financial Statements Balance Sheet
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Reporting Business Activities Obtain Financing Issue debt and stock Make Investments Purchase land, bldgs, inventory, etc. Conduct Operations Sell goods and services to customers Pay employees, suppliers, creditors Balance Sheet Balance Sheet Assets Income Statement Net income
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Balance Sheet Describes the financial position of the firm at a given point in time Assets are resources owned or controlled by the firm Future economic benefits or rights that are owned or controlled by the firm Liabilities are a source of claim against the resources of the firm Fixed and unavoidable obligations to transfer cash or some other good or service to an outside party at some future time Assets = Liabilities + Shareholders’ Equity
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Balance Sheet – Cont’d Shareholders’ Equity – another source of and claim against the resources of the firm Shareholders' equity represents amounts invested in the firm by it’s owners, either: a) directly, when they purchase of shares from the company; b) indirectly, when they allow the firm to retain its earnings rather than requiring that it paying them out in the form of dividends.
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Pacific Sunwear of California, Inc. FY2004 Consolidated Balance Sheet
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Pacific Sunwear of California, Inc. FY2004 Consolidated Balance Sheet
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Income Statement Describes the financial results of the firm’s operations over a period of time Revenues represent resources (assets) acquired or obligations (liabilities) satisfied by the firm in exchange for the goods or services sold by the firm to others
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This note was uploaded on 05/20/2010 for the course ACCT 101 taught by Professor Briancadman during the Spring '10 term at Penn College.

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Lecture02 - Lecture 2 Overview of Financial Statements...

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