COMMERCE 1AA3 Lecture Notes - Lecture 4: Net Income, Cash Flow Statement, Financial Statement

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Aadil Merali Juma

Document Summary

Liabilities- future economic sacrifice as a result of a past transaction. Non-monetary - go away by providing goods/services. Current and long-term (list on slides and notes) Contributed surplus - don"t need to know atm. Accumulated other comprehensive income (loss) - not taught until level ii. Three sections: operating, investing, financing (in this order) Deals with the day-to-day cash flow (inputs and outputs) Don"t want to be bleeding (loss) unless it"s a startup. Strictly deals with buying and selling long-term assets. Deals with 1) long-term liabilities, 2) common shares, 3) dividends. *rest of the slides deal with how the numbers are inputted into the statements and organizations and standards, read rest on own* Income statement: statement of r/e, cash flow statement, all of the above, only a & b. Answer: d - net income first line, makes adjustments to convert net income to net cash (chp. 12) -> 7 in operating, 2 in investing, 5 in financing.