BUSI 1003 Lecture 1: Chapter 1 Sept.6.2013.docx
6 Apr 2015
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Document Summary
Sometimes called the language of business , accounting is an information system that provides reports to stakeholders about the economic activities and condition of a business. Essentially, it summarizes the financial performance of the firm for external users. Financial condition: as of a point in time and over a period of time. Income statement reports the change in financial condition due to operations. It"s a summary of revenue and expenses for a specific period of time. Retained earnings statement summary of changes in the retained earnings in the business for a specific period of time. May also be called statement of changes in shareholders" equity. Balance sheet list of assets, liabilities and shareholders" equity as at a specific date. Statement of cash flows summary of cash receipts and cash payments for a specific period of time. Help to generate revenues during the period reported on. It is the accumulation of net income since incorporation less dividends paid to the shareholders.
