Business Administration 1220E Lecture Notes - Lecture 1: Net Income, Asset, Combined Gas And Steam

• School: Western University
• Department: Business Administration
• Course: Business Administration 1220E
• Professor: Raza Khan

Document Summary

Financial statements: statement of earnings, balance sheets, and statement of retained earnings (page 7-54) Statement 1: income statement (statement of earning or a (consolidated statement of operations) Shows how profitable the corporation during a particular period of time. Income statement is in the greater interest of investor because it shows a record of the company"s activities over an entire operating cycle (typically 1. Year) whereas a balance sheet shows the financial position on a given date. Income statement: revenue expense = net earning or net loss. Revenue and expense must be recorded, if it falls under a specific period (even they haven"t paid for the item yet) Revenue earned by the company from its customers for goods sold or service rendered (for goods) For service based business, it"s referred as operating revenue. Always consider the value of returned goods and amount of cash discount for quick payment by credit customers. (ex.