BUS 082 Lecture Notes - Lecture 16: Accrual, Current Liability, Accounting Equation

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 082
• Professor: gradin

Document Summary

The set of activities involved in converting information and individual transactions into financial statements. Asset: anything with future benefit owned or controlled by a firm. Liability: a claim against a firm"s assets by creditors. Owner"s equity: the funds that owners invest in the business plus any profits not paid to. Accounting equation: the relationship that should reflect a firm "s financial position at any time: assets should always equal the sum of liabilities and owners" equity owners in the form of cash dividends. Financial statements: against its assets at a particular point in time. Balance sheet: a statement of a firm"s financial position what it owns and the claims. Photograph of firm"s assets together with its liabilities and owner"s equity. Income statement: a financial record of a company"s revenues, expenses, and profits over a. Focus on revenues and costs associated with revenues. Statement of changes in equity: period to the end of the next fiscal period.