Sole Proprietorship Equation: - ANS-one Owner, One level of taxation, unlimited liability
Partnership - ANS-two or more owners, one level of taxation, unlimited liability
Corporation - ANS-two levels of taxation, limited liability, legal entity
Retained Earnings Equation - ANS-Beginning Retained Earnings
ADD: Net Income
, LESS: Dividends and other expenses
Ending Retained Earnings
Components of Financial Statements - ANS-Balance sheet, Income statement, Statement of
stockholders equity, Statement of cash flows
Balance Sheet: - ANS-is a listing of a firms assets, liabilities, and stockholders equity
Balance Sheet: Assets: - ANS-List of all resources owned by a company. Cash, A/R, Supplies,
Equipment
Balance Sheet: Liabilities: - ANS-List of all amounts a company owes. A/P, Notes payable
Balance Sheet: Stockholder's Equity: - ANS-Is a claim on the assets of a business that remain
after all liabilities have been payed off to creditors
Income Statement: - ANS-Reports the overall operating performance of a business over a
period of time
Income Statement: List: - ANS-Revenues and Expenses
Statement of Stockholder's Equity: - ANS-Presents information regarding the events that cause
a change in Stockholder's Equity during a period of time
Statement of Stockholder's Equity: List: - ANS-Contributed Capital and Earned Capital
Statement of Cash Flows: - ANS-Reports a company's cash inflows and outflows during a
period of time
Statement of Cash Flows: Operating Activities: - ANS-Reveals cash spent on operating
expenses and cash received from the sale of goods and services
Statement of Cash Flows: Investing Activities: - ANS-includes the cash payments and receipts
when a business buys and sells certain assets that is uses in its operations
Statement of Cash Flows: Financing Activities: - ANS-reports the issuance and repurchase of
shares in a business and the amounts borrowed and repaid to creditors
Accounting Cycle: - ANS-Analyze, Record, Adjust, Report, Close
Accounting Transaction: - ANS-is an economic event that affects assets, liabilities, or
stockholders equity and must be recorded in the company's financial statement
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller modockochieng06. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.