What exactly is an expense?
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Assets that are consumed when generating revenue.
What are example of liabilities
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Notes Payable, Payables, and Unearned service Revenue
Profitability Ratio
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Measures the income or operating success of a company for a given
period of time. EPS (Earning per Share). Measures the net income earned
on each share of stock of a company. Calculated by NI-Div/ Average
Common Shares Outstanding
Corporation
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A business organized as a separate legal entity owned by stockholders.
Anyone can become an owner via stocks. Stocks are easy to sell. Easy to
raise funds to due to sale of stock.
Investing Activities
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Ways a business uses money to grow or make the business better through
improvements. 4 types of activities.
Using Statement of Stockholders equity
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, Report changes in stockholder equity accounts. Mostly used for looking at
changes of dividends and common stock.
Cash
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MOst important asset owned by a company. Actual money at hand.
Operating Activities
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Ways a business actually runs, and what is needed for the business to
operate. 5 TYPES.
Journal
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Book of original entry. Transactions recorded in chronological order.
Discloses complete effects of transaction, chronological order, and
prevents or locates errors.
Retained Earnings Purpose
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Assets that are consumed when generating revenue.
What are example of liabilities
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Notes Payable, Payables, and Unearned service Revenue
Profitability Ratio
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Measures the income or operating success of a company for a given
period of time. EPS (Earning per Share). Measures the net income earned
on each share of stock of a company. Calculated by NI-Div/ Average
Common Shares Outstanding
Corporation
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A business organized as a separate legal entity owned by stockholders.
Anyone can become an owner via stocks. Stocks are easy to sell. Easy to
raise funds to due to sale of stock.
Investing Activities
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Ways a business uses money to grow or make the business better through
improvements. 4 types of activities.
Using Statement of Stockholders equity
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, Report changes in stockholder equity accounts. Mostly used for looking at
changes of dividends and common stock.
Cash
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MOst important asset owned by a company. Actual money at hand.
Operating Activities
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Ways a business actually runs, and what is needed for the business to
operate. 5 TYPES.
Journal
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Book of original entry. Transactions recorded in chronological order.
Discloses complete effects of transaction, chronological order, and
prevents or locates errors.
Retained Earnings Purpose
