ACC 100 Chapter Notes - Chapter 4: Cash Flow Statement, Financial Statement, Retained Earnings

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Keith Whelan

Document Summary

Accounts: common subgroups of financial reporting elemts that are used to gather business activities. Financ info is a must for decision making. Stakeholders could analyze the business easily and compare it to past years and other businesses. Financ info tells a story, what it does and how well it does it. Provide internal and external stakeholders answers to questions, help with decision making, anaylze business and meet objectives. Balance sheet statement of retained earnings income statement. Businesses also produce the statement of cash flows but the elements are not used to create this statement so it is not included on this flowchart. Interrelationship of financial reporting elem from ch. Need profit to calculate retained earning and need retained earning to calculate equity, which is then put into basic accounting equation. Show order fiancial statement must be produced in. Retained earnings calculates ending retained earnings, which flows into the balance shoot.