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..