Accounting and finances
Assets
Liabilities
Value
Owe
Shareholders’ Equity
A = L + SE
The value of the company
owns and control.
Ex: Cash
Accounts Receivable
Inventory
Property (Land), Plant (Buildings),
Equipment
Any future economic obligation.
Ex: accounts payable
Notes payable
Bank loans
Revenue EARN
Expenses COSTS
EX: common shares
Retained earnings (how
much profit is being kept in
the company)
Dividends PULLING MONEY FROM THE C OMPANY
393,000
39,000
9,000
35.000
Current assets and short-term assets (within one year)
Long-term assets
Income statement (it is all about revenues) – how much money did they make or lose revenue – expenses = net income (profit)
The statement of financial position (lists all of the assets, liabilities, and equity) – what are the good stuff that the company owns and
controls liabilities + shareholders’ equity = assets
The cash flow statement – what amount of money did I begin with, how did it change and what in I end up with cash