University:
McMaster University
Course:
ACC 928 | Introductory Management Accounting
Academic year:

2022
Views:

45

Pages:

2
Author:

Sabrina S.

Ch The 9 Financial Statements Use the accounting equation A=L+SE Assets Liabilities + Owner's Equity Explain the purposes of each type of francial statement ~Income Statement measures a company's operating performance for a specified period of time 02 Elements Income & Expenses Total Income (revenues + gains) Total Expenses (expέησες Net Income (or Net Loss) Statement of Retained Earnings reports the changes in a company's retained earnings during the some period covered by the income statement Beginning Retained Earninge Net Inane + Other Comprehensive Income (IFRS only) Dividends Ending Retained Earnings Balance Sheet (or statement of financial position) reports a company's financial position as al a specific date, which almost always falls on the last day of a annually reporting period. monthly/quarterly/ 03 Elements assets it controls rabikkes it is obligated to pay equity owners have accumulated Liabilities Owners Equity Assets ~ Statement of Cash Flows: reports the specific business activities that generated cash receipts or statement resulted in cash payments during the same period covered by the income. Operating Cash Flows I Investing Cash Flows I Financing Cash Flows Increase (or decase) in cach Understand the values on the financial statements where they are derived Understand the relationships in the 4 typer of financial statements 1. Net income from the income statement is included in the calculation of retained cornings on the statement of retained earnings (which is included as part of the statement of changes in owners' equity under IFRE) 2. The closing retained earnings balance from the statement of Retained earnings is in the calculation of owners equity on the balance sheet included 3 The closing cash balance from the statement of cash flows appears on the balance sheet as an asset