Chapter one practice and more
Balance sheet
Assets= Liability plus stockholders equity for a given year
You _____ determine the cash in retained earnings.
Cannot
Financing Activities
Cash flow activities that include (a) obtaining cash from issuing debt and repaying the amounts borrowed and (b) obtaining cash from stockholders, repurchasing shares, and paying dividends. Receipts from stock issued From loans Cash payments for dividends
Operating Activities
Cash flow activities that include the cash effects of transactions that create revenues and expenses and thus enter into the determination of net income. receipts from customers cash payments for operating exp.
Investing Activities
Includes cash transactions involving the purchase and sale of long-term assets and current investments Purchase Land
Optional items on an income statement are
Income tax expense Interest expense Operating expense rent expense utilities expense service revenue ORDER Revenue first Biggest expense Smaller by order
Stockholder equity
common stock plus retained earnings
Net income is included in the balance of
stockholders' equity`
statement of changes in owner's equity
summarizes changes in the owner's capital account as a result of business transactions that occur during the period..