ACCT 225 Lecture Notes - Lecture 2: Retained Earnings, Income Statement
26 Aug 2016
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Accounting information and measurement system that helps to determine information that is relevant, reliable, and comparable. Assets (a) - resources, anything that you own or control that brings you a benefit. Revenue (rev) - amounts recorded when products/services are sold. Liability: ,000 you still owe equity: ,000 already paid. Income statement revenues expenses = net income. Statement of stockholder equity common stock + retained earnings. Beginning retained earnings + net income dividends = end retained earnings. Balance sheet assets = liability + equity. Statement of cash flows statement that illustrates how the cash flows in the business. Aims to categorize different in flow and out flow activities. Investing activities: things that will help your business. All profits of the company are claimed solely by stockholders. Profit is often referred to as net income. The measurement role of accounting is to create a record of the activities of a company.
