BUS-A 100 Chapter Notes - Chapter 2: Retained Earnings, Basis Of Accounting, Balance Sheet
5
BUS-A 100 Full Course Notes
Verified Note
5 documents
Document Summary
Balance sheet, income statement, statement of retained earnings, Often prepared at the end of a period of time. Balance sheet-gives reader outside of company a snapshot. Current assets-cash or assets expected to become cash in one year. Long term investments-assets purchased as investment, not to be used in operations (usually stocks and bonds) Fixed assets-purchased by company for operations and expected to last more than one year (equipment, buildings) Current liabilities-debts that are due within one year. Long term liabilities-debts that are not due within one year. Ending balance on a balance sheet becomes next starting balance. Reports net income of company over a period of time. Recorded as expense when they are incurred, not paid. Incurred =used up matching-expenses shown as deductions from revenue net income/loss=net pro t, pro t, earnings. Statement of retained earnings-total of all net incomes earned over all the years it has been in business minus losses.
