{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Accounting Review Ch. 1 -4

Accounting Review Ch. 1 -4 - Four Basic Financial...

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

View Full Document Right Arrow Icon
Four Basic Financial Statements 1. Balance Sheet - reports the amount of assets, liabilities, and se at a point in time 2. Income Statement - reports the accountant’s primary measure of performance of a business, revenues less expenses during the accounting period 3. Statement of Retained Earnings – reports the way that net income and the distribution of dividends affected the financial position during the accounting period 4. Statement of Cash Flows - reports inflows and outflows of cash during the accounting period in the categories of operating, investing, and financing Most companies either produce quarterly reports and annual reports . Accounting Entity - the organization for which financial data are to be collected Stockholders/ shareholders- owners of the business Financial Position - the economic resources that the company owns and the sources of financing for those resources Assets (debit) - the economic resources owned by the company with probable future benefits Liabilities (credit) – the company’s debts or obligations that will be settled Stockholders’ Equity (credit) - the amount of financing provided by owners of the business and earnings Accounting Period – the time period covered by the financial statements Basic Accounting Equation : A = L + SE Net Income = Revenues – Expenses Ending Retained Earnings = Beginning Retained Earnings + Net Income – Dividends Cash flows from operating activities – directly related to earning income Cash flows from investing activities – related to the acquisition or sale of the company’s productive assets Cash flows from financing activities – directly related to the financing of the enterprise itself Generally Accepted Accounting Principles (GAAP) – the measurement rules used to develop the information in financial statements Securities and Exchange Commission (SEC) - the U.S. government agency that determines
Background image of page 1

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

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

{[ snackBarMessage ]}