BUS-A 100 Lecture Notes - Lecture 6: Preferred Stock, Accounts Receivable, Income Statement
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BUS-A 100 Full Course Notes
Verified Note
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Understand how accounts receivable are used and what makes the balance go up and down. Understand the inventory and cost of goods sold accounts. Know what causes the inventory account to increase and decrease. Understand prepaid accounts and what causes them to increase and decrease. Understand long-term assets and how these accounts are impacted by sales and purchases. Understand the accounts payable account and how it relates to inventory. Know what causes increases and decreases in both of these accounts. Understand the notes payable account and the interest payable account and how they are increased and decreased. Understand some of the other common payable accounts and how they are impacted by transactions of the business. Understand the common stock account and what increases it. Know how to prepare a statement of retained earnings and understand how it fits into the accounting cycle. Know the possible causes of increases and decreases in the retained earnings account.
