ACCT 240 004 8 27 Introduced course and syllabus Chapter 1 In a business Investors Shareholders Creditors Lenders Business Operations 1 Purchase Parts and Labor 2 Manufacture Product 3 Sell Product to customers 4 Collect Cash fro Customers and pay Creditors Financial Information goes to Managers Internal and Investors Creditors External Financial Statements 1 Balance Sheet 2 Income Statement 3 Statement of Retained Earnings 4 Statement of Cash Flow Cash Short term investment Accounts Receivable Notes Receivable Inventory to be sold Supplies Prepaid Expenses Long term investments Equipment Buildings Land Intangibles Accounting Equation for balance sheet universally correct A Assets L Liabilities SE Stockholder s Equity All assets are listed in balance sheet in order of liquidity form most to least Liabilities In order from most to least immediate Accounts payable Accrued Expenses Notes Payable Taxes Payable Unearned Revenue Bonds Payable Stockholder s Equity Contributed Capital Amount stockholders have contributed Retained earnings Net income dividends if any Statement of retained earnings Net income dividends retained earnings Net Income is determined on income statement Revenue expenses retained earnings
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