MGAB01H3 Lecture Notes - Lecture 13: Investment, Share Capital, Retained Earnings

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: Liang Chen

Document Summary

Why: to make sure how well the company is doing. Who are you writing the report for and what do they need (creditor etc. ?) Cost acctg (how much sell good to proit) Stmt of comprehensive income (including i/s or stmt of earnings) (pg. Foreign exchange (gain/loss: buy products outside of country, i. e. , k in u. s- bring to canada- drop more expensive to buy u. s may be k. Principle: when fulills obligaion by providing goods/services (may be paid in another period) Pass on legal obligaion: where you take ownership/itle (yours) of goods. Expense: $ value of economic resourced used/consumed to earn rev. Headings for statement: company"s name, title, date (duraion for i/s: for the month/3 months/yr ended ______) R/e: money reinvested & not distributed to sh. R/e beginning (from last yr) +ni/loss (this year)-dividends=ending retained earnings. Balance sheet/stmt of financial posiion: (at specific point in time) Assets= economic resources controlled/owned by the enity for which future economic beneits can be obtained.