1. Accounting

3. Retained Earnings: $500,000 Net Income – Dividends = Retained Earnings Revenue – Expenses = Net Income

4. Why is the time period on a Balance Sheet different from the other financial statements? January 1, 20X1 – December 31, 20X1 January 1, 20X2 – December 31, 20X2 The exact date is used on a Balance Sheet, not a time period

5. The Balance Sheet

6. Calculate Earnings Per Share There are 10,000 shares

7. Calculate Earnings Per Share There are 10,000 shares: $75,000/10,000 =$7.50

8.  Cash and any other asset expected to be used up or converted to cash within the next year.  Accounts receivable  Inventory  Supplies  Prepaid expenses  Current or long term assets help financial analysts evaluate a company’s liquidity. Does the company have enough cash to pay their bills?

9.  Cash and any other asset expected to be used up or converted to cash within the next year.  Accounts receivable  Inventory  Supplies  Prepaid expenses  Current or long term assets help financial analysts evaluate a company’s liquidity. Does the company have enough cash to pay their bills?

10.  Assets which provide future benefits extending beyond the next year of a company's operations.  Property (land)  Plant and equipment  Intangible assets  Natural resources

11.  Assets which provide future benefits extending beyond the next year of a company's operations.  Property (land)  Plant and equipment  Intangible assets  Natural resources

12.  An item on the balance sheet that includes all of a company’s obligations due within the next year.  Accounts payable  Wages payable  Other liabilities

13.  An item on the balance sheet that includes all of a company’s obligations due within the next year.  Accounts payable  Wages payable  Other liabilities

14.  A classification on balance sheet representing a company’s future obligations maturing beyond its next year of operations.  Bonds payable  Notes or loans payable  Mortgage notes payable

15.  A classification on balance sheet representing a company’s future obligations maturing beyond its next year of operations.  Bonds payable  Notes or loans payable  Mortgage notes payable

16. USE  If potential investors wished to clarify how a company had been financed to date  If an investor wished to find a company’s earnings per share for the preceding year  The only financial statement that directly shows the amount of dividends paid to a company’s owners during the year  The reasons for a company’s success or failure in its operations over the last year is best determined by referring to the company’s FINANCIAL STATEMENT  Income statement  Balance Sheet  Statement of retained earnings  Cash flow statement

17. USE  If potential investors wished to clarify how a company had been financed to date  If an investor wished to find a company’s earnings per share for the preceding year  The only financial statement that directly shows the amount of dividends paid to a company’s owners during the year  The reasons for a company’s success or failure in its operations over the last year is best determined by referring to the company’s FINANCIAL STATEMENT  Income statement  Balance Sheet  Statement of retained earnings  Cash flow statement