Chapter 1 Flashcards
(35 cards)
4 Financial statements
Income statement
Statement of stockholders’ equity
Balance sheet
Statement of cash flows
Financial statement that presents the financial position of the company on a particular date
Balance Sheet
A financial statement that measures activities involving cash receipts and cash payments over an interval of time
Statement of cash flows
Two primary components: common stock and retained earnings
Stockholders’ equity
Reports a company’s financial performance over a specific accounting period
Income statement
Income statement equation
Revenue-Expenses=Net Income
Retained earnings equation
Beginning balance + Net Income - dividends
Owners equity
Capital stock
Retained earnings
These are all the normal activities involved in the operation of your business
Operating
Buying and selling the long term assets
Investing
Issuing common stock to an investor
Financing
What is this: paying taxes
Operating
What is this: selling common stock to investors
Financing
What is this: paying dividends
Financing
What is this: buying land
Investing
What is this: selling items
Operating
What is this: buying buildings
Investing
What is this: buying or selling the stocks and bonds of another company
Investing
What is this: issuing bonds
Financing
What is this: pay interest
Operating
What is this: interest income
Operating
What is this: buy supplies
Operating
What is this: borrow money from the bank and returning
Financing
What is cash
Asset
