COMMERCE 1AA3 Lecture Notes - Lecture 16: Retained Earnings, Income Statement, Balance Sheet
6 Mar 2017
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Asset: will result in future economic bene t, resulted from a past transaction, measurable in , you have control over it. Liability: a future economic sacri ce, results from a past transaction, measurable, enforceable. A: liabilities don"t have to be explicitly stated for it to be a liability. It is not required to be stated as per the four rules de ning a liability. Revenue can be a credit even when cash has not been physically exchanged. Fixed assets: ppe (physical items like equipment, land, building, copyright stuff, lti (long term investments) insurance, etc. The most important objective of accounting is to nd useful information about the nance of a company. Income statement/pro t and loss statement (p and l)/statement of earnings. 1: statement of retained earnings, balance sheet, statement of cash flow. Q: what is the most important part of any company"s nancial information.
