ACTG 1P91 Lecture Notes - Lecture 1: Sole Proprietorship, Retained Earnings, Stock Certificate

• School: Brock University
• Department: Accounting
• Course: ACTG 1P91
• Professor: Omar Roubi

Document Summary

Is an information system designed by an organization to capture the activities affecting it"s financial condition and then reports the results to decision makers both inside and outside the corporation. summarizes financial results profits/ losses external financial reporting requirement. 1: statement of retaining earning, balance sheet, statement of cash flows. Creditors- lend money in exchange for interest and principle. Beg retained earning +/- net income (loss) dividends = ending re. Re must be positive in order to pay out a dividend range of time (ex: month ended, year ended) a net loss will decrease retained earnings. At a specific date (at september 30th, 2014) Asset: economic benefit, control, ex: building, land, equipment, inventory. Shareholder"s equity: contributed capital- amount of capital of shareholders, investors, retained earnings-profits that was earned by operation, a = l + cc + re. A = l+ cc + beg rf + rev exp div.