FA 101 – Chapter 1 – Communicating though Financial Statements

Financial Accounting 101 FA101 Chapter 1A: A Framework for Financial Accounting FA 101 – Chapter 1 – Communicating though Financial Statements

Four basic Financial Statements: (remember this is for external stakeholders: Creditors and Investors)

  • Income statement
  • Statement of Stockholder Equity
  • Balance Sheet
  • Statement of Cash Flow

Income Statement: Revenues – Expenses = Net Income   (set Illustration 1-5: Income Statement for Eagle Golf Academy)

Statement of Stockholder Equity:  Stockholder Equity = Common Stock + Retained Earnings

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