BUSS1030 Lecture Notes - Lecture 2: Income Statement, Deferral, Retained Earnings

• School: University of Sydney
• Department: Business Studies
• Course: BUSS1030
• Professor: Abdul Razeed

Document Summary

Lo1- explain the nature and purpose of the statement of financial position (balance sheet) and its component parts. Lo2- explain the accounting equation, and use it to build up a statement of financial position at the end of a period. Lo4- apply the different possible formats for the statement of financial position. Lo5- identify the main factors that influence the content and values in a statement of financial position. Lo6- explain the main ways in which the statement of financial position can be useful for users of accounting information. Lo7- identify the main deficiencies or limitations in the statement of financial position. Nature and purpose of statement of financial position (balance sheet): Primary purpose of balance sheet is to set out financial position of a business at a particular point in time. It represents a summary of info provided in the accounts and lists the balances in all accounts.