Accounting Exam 1 Orourke

Balance Sheet Definition

A balance sheet provides a snapshot on a given date.

Retained Earnings Definition

An amount earned by a corporation and not yet distributed to stockholders.

What goes on the balance sheet?

August 31 Assets (Total assets), liabilities (Total liabilities), stockholders equity (Total SE)---(Total Liabilities+SE)

Accounting Equation

Cash + AR + Supp. + Equip. = NP + AP + Common Stock + Retained Earnings + Revenues - Expenses - Dividends

Assets

Cash, Accounts Receivables, Supplies, Equipment

What goes on an income statement?

For the Month Ended Revenues - Expenses = Net Income/Loss

What goes on a retained earnings statement?

For the month ended Retained earnings + Net Income (From Income statement) - Dividends

Liabilities

Notes payable, Accounts Payable

Retained Earnings

Revenues- expenses- Dividends

GAAP (Generally Accepted Accounting Principles)

The standards and rules that accountants follow while recording and reporting financial activities.

Income Statement Definition

a financial statement that gives operating results for a specific period

Stockholders' Equity

common stock and retained earnings