ACCT 1201 Chapter Notes - Chapter 1: Financial Statement, Deferral, Cash Flow Statement
13 Feb 2014
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Accounting in the language of business: the building block of any business is transactions, examples of transactions when starting a business. The four basic financial statements (balance sheet, income statement, Statement of retained earnings, statement of cash flows) - financial statements provide a summary of all a company"s transactions. Who uses the financial statements: balance sheet reports the amount of assets, liabilities, and stockholders" equity of an accounting entity at a point in time. At december 31, 2010 (in thousands of dollars) Heading includes: 1) name of the entity, 2) title of the statement, 3) specific date of the statement, and 4) unit of measure. Accounting entity organization for which financial data are to be collected; must be precisely defined. Assets represent the economic resources of a business. Liabilities (stockholder"s equity) represent the sources of financing for economic. Contributed capital the investment of cash and other assets in the business by the owners.
