ACTG 1P91 Lecture Notes - Balance Sheet, Net Income, Retained Earnings

• School: Brock University
• Department: Accounting
• Course: ACTG 1P91
• Professor: Norman Chasse

Document Summary

B/s reflects accts equation -> point in time (cr. ) R/e) owners investment profits re-invest (cr. ) (rev. (dr. ) Investors want to evaluate how well the company manages cash. I/s shows net income -> period of time. S/cf presents information questioned in b/s: reconciles beginning + end cash balance. Income statement -> revenue expenses = net income. +/- operating activities (buying and selling, as well as other operating expenses) +/- investing activities (buying or selling long lived assets) +/- financing activities (cash in-flows or out-flows regarding creditors and owners) Balance sheet: a = l +s/e. Statement of cash flows: cash, end of the year xx. For the year ended december 31, 2012 (in millions) Cash received from sale of fixtures & equipment. Other cash outflows used for investing activities (384) Shareholders" equity = paid in capital or share capital. Balance -> increase with cr. , decrease with dr. Expenses -> dr. balance -> increase with dr. , decrease with dr.