ACCT 1201 Chapter Notes - Chapter 1: Statement Of Changes In Equity, Cash Flow Statement, Accounts Payable
22 Mar 2013
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Accounting in the language of business: the building block of any business is transactions, examples of transactions when starting a business. The four basic financial statements (balance sheet, income statement, statement of retained earnings, statement of cash flows) - financial statements provide a summary of all a company"s transactions. Banks and investors: balance sheet reports the amount of assets, liabilities, and stockholders" equity of an accounting entity at a point in time, snapshot. Assetscash4,895$ accounts receivable5,714 inventories8,517 plant and equipment7,154 land981 total assets27,261$ liabilitiesaccounts payable7,156$ notes payable9,000 total liabilities16,156 stockholders" equitycontributed capital2,000 retained earnings9,105 total stockholders" equity11,105 total liabilities and stockholders" equity27,261$ maxidrive corp. balance sheet(in thousands of dollars)at december 31, 2010. Assets = liabilities + stockholder"s equity (this is the accounting equation. ) Assets represent the economic resources of a business. Liabilities (stockholder"s equity) represent the sources of financing for economic. Contributed capital the investment of cash and other assets in the business by the owners.
