MGCR 211 Study Guide - Midterm Guide: Retained Earnings, Net Income, Financial Statement

• School: McGill University
• Department: Management Core
• Course: MGCR 211
• Professor: Julia Scott

Document Summary

Change in retained earnings = net income dividends. Information system which records summarizes and reports the underlying economic conditions of an entity. Used by both those inside the entity and outside to understand the entity. Basic assets/revenue/expense: revenue/liabilities/equity: things that increase net earnings therefore increase retained earnings. Normally have credit balances: expenses/assets: things that decrease net earnings. Revenues/expenses vs. gain/loss: expenses/revenues: inflows/outflows from product you sell, gain/loss: assets or programs that are sold/bought for a profit when it is sold/bought for more than what is on the sheet. (ex. Securities for a product, trucks sold that were not needed anymore) Forms of organizations: sole proprietor, partnership, corporation. Shareholders buy stock & elect board of directors who hire management who run the company. Types of corporations: small private, large private, large public. Equity: in corporation shareholder"s equity (investments by shareholders in the form of cash or assets)