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