Assignment #1

Assignment #1 - 5. 9. 13. 14. 15. 17. 20. 21.

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
5. GAAP - Generally accepted accounting principles 9. Assets = Claims 13. Stockholders' equity 14. Liabilities 15. 17. 20. Common stock + Retained Earnings 21. 23. 24. 25. 26. 27. The income statement relationship between the assests and the claims of  those assets.  The three components of an accounting  equation are: liabilities, common stock and retained  earnings.  Liabilities are "future obligations of the  enterprise," common stock are certificates that  acknowledge assets received from owners and retained  earnings are revenues minus expenses and  distributions. Method of keeping records that provides a system of  checks and balances by recording transactions in a dual  format Revenue transactions are viewed as asset source  transactions.  The asset increase is balanced by an  increase in the retained earnings section of  stockholders' equity because producing revenue  increases the amount of earnings that can be retained 
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 08/28/2011 for the course BUS 600 taught by Professor Thomas during the Spring '11 term at Morehead State.

Page1 / 4

Assignment #1 - 5. 9. 13. 14. 15. 17. 20. 21.

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online