BUSI 1101 Chapter Notes - Chapter 1: Financial Statement, Legal Personality, Income Statement

• School: Memorial University
• Department: Business Administration
• Course: BUSI 1101
• Professor: N Wans

Document Summary

Statement of financial position (aka balance sheet): a financial statement that reports the assets, liabilities, and shareholders" equity at a specific rate. Accounting equation: the equation that states that: assets = liabilities + shareholders equity. Public corporations: corporation whose shares are publicly traded on a stock exchange. Private corporations: corporation whose shares are not traded on a public stock exchange. Generally accepted accounting principles (gaap): a general guide, having substantial authoritative support, that describes how economic events should be recorded and reported for financial reporting process. Share capital: shares representing the ownership interest in a corporation. If only one class of shares exists, it is known as common shares. Statement of cash flows: a financial statement that provides information about the cash inflows (receipts) and cash outflows (payments) for a specific period of time. Deficit: a negative balance in retained earnings resulting from cumulative net losses exceeding cumulative net income.