MKTG 3104 Chapter Notes - Chapter 1: Officemax, Retained Earnings, Accounts Payable
Document Summary
Two primary functions: 1 measure the activities of a company, 2. Investing activities (items the business invests in to support the operating activities; aka assets. Financing activities (cash results from borrowing money or owners investing in the business) Retained earnings statement: cumulative net income of the company, dividends are a distribution of the company"s earnings to the owners; paid out of retained earnings retained earnings = net. Balance sheet: reports assets, liabilities and stockholders" equity, values are reported at a point in time. ****except for balance sheet: the balance sheet is on one date, an instantaneous time. The title would be may 31, 2014 instead of above**** Accounts payable : expenses to other stores (ex. Beginning stockholder"s equity + revenues - expenses - Definition of "liquidity: the degree to which an asset or security can be bought or sold in the market without affecting the asset"s price. Liquidity is characterized by a high level of trading activity.
