Financial Act Chpt 1 Notes

Assets economic resources owned by a business or

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Unformatted text preview: uity . Assets: Economic resources owned by a business or expected to benefit the business in the future Liabilities: Any obligations (debts) of a business to pay cash, transfer assets, or provide a service to another entity in the future. • Equity: The residual interest in the business; claims by the owners to the assets of the business after all obligations have been satisfied. (Net Assets) • Four types of transactions that affect equity: 400 Owner investments: Assets are contributed to the business by its owner(s) • • Owner withdrawals: Assets are withdrawn from the business by its owner(s) . Revenues: Increases in equity as a result of operations of a business (sales) • Expenses: Decreases in equity (resources used up to help earn revenues) Communication of Financial Information: Financial statements are the primary means of communicating financial info...
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This note was uploaded on 01/22/2014 for the course ACG 2021 taught by Professor Linkovich during the Spring '08 term at University of South Florida.

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