BUS-A 100 Lecture Notes - Lecture 2: Equipment Rental, Accounts Receivable, Current Asset

• School: IU
• Department: Business
• Course: BUS-A 100
• Professor: Winston Vivian

Document Summary

Know and identify the four basic financial statements. Know the classifications of the accounts on the balance sheet. Understand how the balance sheet accounts carry over from one period to the next. Understand the classifications on a simple income statement. Understand the differences between accrual and cash-basis accounting. Know the four basic components of the statement of retained earnings. Be able to discuss how income flows through the statements to the balance sheet to bring it into balance at the end of the period. Know the order in which the statements must be prepared. Understand the purpose of the statement of cash flows. Understand the categories found in the statement of cash flows. According to both gaap and ifrs, every company has to present four financial statements at least once a year. 2: statement of retained earnings, statements of cash flows. The first three of these statements work together in that they are dependent on each other.