BUSI 1001 Lecture Notes - Lecture 1: Current Liability, Retained Earnings, Financial Statement

• School: Carleton University
• Department: Business
• Course: BUSI 1001
• Professor: Jacques Maurice

Document Summary

Aspe = accounting standards for private enterprises. In an annual report, there are 4 financial statements: balance sheet (statement of financial position, income statement, statement of changes in equity, statement of cash flow. When making any of the financial statements the first 3 lines should be: name of company, type of statement, date (whose format is specific to the type of statement) Provides a list of all assets owned by an entity and how the assets are financed. Assets can either be liabilities or equities. Current assets = short-term assets that will be used up by the business within a year or so. Noncurrent assets = last more than the year. Current liabilities = paid off within a year. Noncurrent liabilities = paid off after the year. Contributed capital = what the owner invested to found the company. Retained earnings = earnings that have accumulated over time in the business.