ACCT 2101 Chapter Notes - Chapter 1: U.S. Securities And Exchange Commission, Financial Accounting Standards Board, Public Company Accounting Oversight Board
11 Sep 2017
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Distribute profits back to stockholders: dividends cash payment to stockholders, not an expense, 2. ) Retain profits to pay for future operations: adds to stockholder"s equity of company, lo1-3: determining how fa info is communicated through statements, financial statements periodic reports published by the company for the purpose of providing information to external users. Income statement: statement of stockholders" equity, balance sheet, statement of cash flows, 1. ) Statement of stockholders" equity summarizes the changes in stockholders" equity over an interval of time with two main sections: 1. ) Common stock represents amount invested by stockholders: 2. ) Retained earnings represents the cumulative amount of net income earned over the lifetime of the company: 3. ) Statement of cash flows measures activities involving cash receipts and payments over an interval of time in 3 categories: 1. ) Operating cash flows cash receipts/payments for transactions involving revenue and expense activities: cash effects of the same activities that are reported in the income statement, 2. )
