1-12-21 accounting
relevance
Accounting information that possesses confirmatory value and/or predictive value
Income statement
A financial statement that reports a company's revenues and expenses and resulting net income or net loss for a specific period of time.
retained earnings
all net income - all dividends
resources of a company
assets
Stockholders' Equity
common stock + retained earnings
what statements represent a company's primary means of communicating information to external users
financial
Best explains companies stock price performance
financial accounting net income
primary means of communicating business activities
financial statement
Four primary financial statements
income statement, statement of stockholders' equity, balance sheet, statement of cash flows
amount owed by a company
liabilities
Assets
liabilities + stockholders equity
Expenses exceed revenues
net loss
statement of stockholders' equity
shows dividends, net income, and beginning balance of retained earnings
Balance Sheet
the financial statement that displays a firm's financial position on a particular date