Class Notes (1,033,337)
US (405,800)
FSU (4,005)
Rivera (10)
Lecture 8

ACG-2021 Lecture Notes - Lecture 8: Treasury Stock, Current Liability, DeferralPremium

2 pages93 viewsSummer 2016

Department
Accounting
Course Code
ACG-2021
Professor
Rivera
Lecture
8

This preview shows half of the first page. to view the full 2 pages of the document.
Lecture 8
Retained earnings
- the net income retained in the corporation
Retained earnings statement
- shows the amounts and causes of changes in retained earnings for a specific
period of time
Balance sheet
- lists a firm's assets and claims to those assets at a SPECIFIC point in time
Asset claims are divided into 2 main categories
- liabilities and stockholders' equity
Balance sheets follow the basic accounting equation
- assets = liabilities + equity
assets
- anything owned
Liabilities
- anything owed
Equity
- what's left (assets-liabilities) owner's share
2 sources of equity
1. equity contributed by owners (common stock)
2. equity earned by operations (retained earnings)
Statement of cash flows
- provides information about the cash receipts and cash payments of a firm for a
specific period of time
- involves operating, investing, and financing activities
Cash from operating activities
1. cash receipts (inflows) from sales, services, commissions, fees, and also from
interest and dividends.
2. Cash payments (outflows) for inventories, salaries, operating expenses,
interest, and taxes
Cash from investing activities
1. Cash receipts (inflows) from selling long term assets (property, plant,
equipment), or marketable securities (stocks & bonds), as well as collecting
loans. |Selling PP&E/Stocks&Bonds/Loans
2. Cash payments (outflows) for purchasing long term assets (property, plant,
equipment), or marketable securities, as well as lending to others.***Buying
PP&E/Stocks&Bonds/Loans
Cash from financing activities
- involves liabilities and equity
1. Cash receipts (inflows) from issuing stock and borrowing money.
find more resources at oneclass.com
find more resources at oneclass.com
You're Reading a Preview

Unlock to view full version

Subscribers Only

Loved by over 2.2 million students

Over 90% improved by at least one letter grade.