ECO358H5 Chapter Notes - Chapter 1: Weighted Arithmetic Mean, Issued Shares, Disclose
Document Summary
Chapter 1 the purpose and use of financial statements. Issue of shares and distribution of dividends does not affect net earnings: dividends is reported on statement of retained earnings, common shares are stated in balance sheet. Financing activities => borrowing cash from lenders by issuing debt, 1. paying debt themselves, issuing shares or distributing dividends. 3. expenses and related accounts such as a/r, inventory, and payables. Operating activities => daily operations that include revenues and. Investing activities => purchasing and disposing long termed assets: statement of retained earnings amounts and cases of changes in retained earnings during the month (+net earnings, - dividends, cash flow statement answers: What was the change in the cash balance during the period: ending amount in cash flow statement must be the cash amount in the balance. 3. sheet: comparative statements financial statements that are reported for more than one fiscal period.