BUS 251 Chapter Notes - Chapter 1: Accounts Receivable, Retained Earnings, Financial Statement

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Steve Gibson

Document Summary

The four main financial statements contained in all annual reports are the statement of income, the statement of changes in equity, the statement of financial position, and the statement of cash flows. Statement of income: the statement of income records the inflow of revenues and gains and the outflow of expenses and losses over the year. The statement helps investors evaluate the performance of the company during the period and it is useful in forecasting the future results of the company. Statement of changes in equity: the statement of changes in equity provides details on how each component of shareholders" equity changed during the period. This includes any changes in share capital, and any income generated by the company less amounts distributed to shareholders as dividends. Statement of financial position: the statement of financial position gives the financial status of the company at a particular point in time.