COMMERCE 1AA3 Chapter Notes - Chapter 1: Retained Earnings, Comprehensive Income, Financial Statement
3 Jun 2015
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Document Summary
Investors are individuals who buy small percentages of large corporations; they make their purchases hoping to gain in two ways. They hope to receive a portion of what the company earns in the form of cash payments called dividends, and they hope to eventually sell their share of the company at a higher price than they paid. Financing activities: when you exchange money with owners and lenders. Investing activities: when you buy or sell property including equipment. Suppliers: companies that you purchase the items that makes up your product. A statement of financial position (balance sheet) reports the financial position (assets, liabilities and shareholder"s equity) of an accounting entity at a point in time: like a financial snapshot at a specific point in time. Heading structure: name of the entity, title of the statement, specific date of the statement, unit of measure. Assets are economic resources legally controlled by the entity, expected to provide future benefit to the company.
