Intro to Financial Accounting Week 1

Building a foundation is important, so pay attention right away

2 main options, debt financing and equity financing

The balance sheet reports dollar amounts for assets, liabilities, and shareholders’ equity

The income statement reports revenues, expenses, and net income

The statement of stockholder’s equity reports the cumulative earnings reinvested in the business

The statement of cash flows reports changes in cash resulting from operating, investing, and financing activities

The notes to the financial statements provide supplemental information to help readers understand the financial statments