CONCEPTS - CONCEPTS assets whatyouown liabilites...

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CONCEPTS assets what you own liabilites what you borrowed equity capital stock investments by owners or stock holders retained earnings whatever was earned in the company EQUITY IN THE BUSINESS ENTITIES dividends The return of money that you invested into a company is paid in the form of  dividends Revenue vs. expense Revenue Revenue the same as dollars Revenue is not dollars Only the measurement of the increase of your ownership Increases retained earnings If your paid a million then you are given empowerment to your ownership Expenses Measure of the assets used up  Decreases the retained earnings
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When earn revenues Then assets+ whatever the amount was =  Need to balance the equation Fundamental part of accounting If you do something to the left side then need to do something to the right side Soo  A + amount = L + E + amount If you spend some of the money then A + amount – spent$ = L = E + Amount – spent$
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This document was uploaded on 11/04/2011 for the course SPEA-V 246 at Indiana.

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CONCEPTS - CONCEPTS assets whatyouown liabilites...

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