ACCT 2252 Midterm Uta

Assets =

Common stock + retained earnings + liabilities

Net Income

is the benefits a company has earned, less the sacrifices made to earn them. It is a benefit to the owners (SHE) through retained earnings.

Dividend

benefits paid out to the owners

Revenues

Earn benefits (revenues) by providing goods/services for cash

expenses

sacrifice cash to earn benefits

revenues - expenses =

net income (If Revenues are < Expenses, then Revenues – Expenses is negative = Net Loss)

Revenues impact on BS

+cash +retained earnings

Expenses impact on BS

-cash - RE

Dividends impact on the BS

-cash -RE