Shared by 
Unlock all 2 pages
Get it free by sharing your own notes, buy just this one, or become a member and unlock documents with your plan.
How to unlock this document
Choose the way that suits you. Each one gives you all 2 pages to read online and the PDF to download.
Share your notes, unlock for free
2 free unlocks for every 5 approved uploads
- Upload your own lecture notes, assignments, essays or past papers
- PDF, Word, PowerPoint and Excel files all work, and you can send many at once
- We check each upload; you get a notification when it is approved
- Spend a free unlock on this document or any other, and keep it for good
- Shared under your public username, never your email
Then upload your notes from your profile.
Buy this document
$2 one-time payment
- All 2 pages of this document, yours to keep
- Download the PDF and read it any time, also offline
- No subscription and nothing to cancel
- Find it again any time under My Profile → Library
You log in or create a free account first, then pay securely.
Become a member
Unlock documents from the whole library, which keeps growing
- Choose any documents you like, up to your plan’s unlocks
- Documents you unlock stay yours, even if you cancel later
- Your unlocks start again with every renewal
- Secure checkout by Dodo Payments
You log in or create a free account first, then pay securely.
Compare the plansAlready a member, or bought this before? Log in to open it
About this document
- Pages
- 2 pages
- Price
- $2 one-time, yours to keep
- Membership
- Included in every plan
- Format
- Subject
- Accounting, Finance
- Module
- ACC 561
This document discusses the four basic financial statements: balance sheet, income statement, cash flow statement, and statement of retained earnings. It explains what each statement shows and who uses it. It is for ACC 561.
What's inside
- The four basic financial statements
- Balance sheet: assets, liabilities, and equity
- Income statement: income and expense
- Cash flow statement: operating, investing, and financing activities
- Statement of retained earnings: net profit, share capital, dividend payments
Who it is for: Students of ACC 561. (Postgraduate)
Share with classmates: WhatsApp Telegram X LinkedIn Facebook
Summary
Financial statements help businesses and outsiders understand a company's financial health. They come in four types. A student learns what each type shows and who uses it.
Four basic financial statements
There are four main financial statements. Managers, owners, investors, creditors, and government agencies use them. They help with budgets, forecasts, performance reports, and business plans.
The balance sheet
The balance sheet shows what a business owns, owes, and the owners' equity. Creditors, banks, and investors use it to judge the company's resources and ability to repay debts.
The income statement
The income statement shows a company's revenues, expenses, and net income over time. Investors and lenders use it to assess the company's profitability and ability to pay loans.
The cash flow statement
The cash flow statement shows the movement of cash and bank balances over time. It helps with forecasting future cash flows and paying creditors and investors.
Key terms
- Assets
- What a business owns, such as resources and property.
- Liabilities
- What a business owes, such as debts and loans.
- Equity
- What a business owes to its owners.
- Net income
- What a company earns after expenses over a period of time.
- Retained earnings
- The details of movement in owners’ equity over a period of time.
- Cash flow
- The movement of cash and bank balances over a period of time.
Questions this document helps with
- What does a balance sheet show about a company?
- How do investors use the income statement?
- What do the three segments of a cash flow statement represent?
Summary written with AI from the document's text.
Ask the AI Teacher
Ask any question about this document or your course, and get a clear explanation.
Log in to ask Create a free account
Free accounts can ask 5 questions a day.