financial accounting 1

statement of retained earnings

reports how the comapny’s retained earnings balance changed for a specific period of time

income statement

reports the net income or net loss of the buisness for a specific period of time

financial statements

business documents that are used to communicate information needed to make business decisions

statement of stockholders’ equity

reports the change in the equity of the business

balance sheet (statement of financial position)

reports on the assets, liabilities, stockholders’ equity of the business as of a specific date

statement of cash flows

reports on a business’ cash receipts and cash payments for a specific period

3 of the types of cash flows

Operating activities: cash receipts for services provided to customers and cash payments for expenses

Investing activities: the purchase and sale of land and equipment for cash

Financing activities: cash contributions by stockholders, cash dividends paid to the stockholders, cash received from borrowing, and cash when loans are repaid