Class notes Financial Accounting (BACC152)

Financial Accounting

Income statement
- During a particular period
- Operating success (measures performance)
- Profit and loss statement
- Revenue-expenses=profit

Balance sheet
- given/specific point of time
- Financial “health” if a business/organization
- Picture-taking a snapshot of the health of organization
- Assets = liabilities+owners equity

Statement of cash flows
- cash inflows and cash outflows
- Identifies major cash flows during an accounting period
- Operating, investing, and financial activities

Stage my of retained earnings
- prepared by corporation
- Shows the amount of money distributed to its owners and the amount withheld for future
growth

Asset
Cash in
Inventory
Recievable
prepaid expenses
Equipment

Liabilities
Accounts payable
Notes payable
Deferred revenue

Equity
Owner contributions+owner withdrawals-

Income statements

Revenue-expenses= profit