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This 3 page Class Notes was uploaded by Malena Kester on Monday February 9, 2015. The Class Notes belongs to BA 101 at University of Oregon taught by Prof. Tom Durant in Fall. Since its upload, it has received 74 views. For similar materials see Introduction to Business in Business at University of Oregon.
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Clutch. So clutch. Thank you sooo much Malena!!! Thanks so much for your help! Needed it bad lol
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Date Created: 02/09/15
Kester 1 Malena Kester BA 101 Class Lecture 012215 Applying Information 0 The goal of business to create wealth for shareholders Q Competing for transactions in the market 0 How can you tell how well you are doing 0 Measure individual transactions 0 Put them all together how much acquired wealth do you have and where did it come from I assets liabilities owners equity 0 How much new wealthy are you creating with it I revenue expense profit Balance Sheet summarizes assets liabilities and shareholders equity snapshot Q Assets resource controlled by a company and from which future economic benefits are expected 0 Assets always liabilities owners equity 0 Liabilities amount owed to lenders suppliers and employees 0 Owners Equity amount of ownership a company has in an asset Balance Sheet imrsets Liabilities 1 Dwners Equity GumHI assets Current Lia ifffim 1 E Z L 3 Tomi current liubxi ii39ties Total Current assets Lungfarm liabilities Tut3 liabilitius Fixed assets Uwuurs E uity 4 B 5 Total fixed Tami owner 3 quoteqm39 1y Tutui Assets Tutat Liabilities and 39 wuurs Equityr Current Assets assets that are easily converted to cash within a one year time frame 0 cash accounts receivable inventory Kester 2 Fixed Assets assets that are not easily converted to cash within a one year time frame 0 property plant equipment 0 acc depreciation deduction Current Liabilities liabilities that are payable within a one year time frame 0 Accounts payable money that is owed to suppliers current debt Owners Equity everything that wasn t borrowed money of investors 0 Common stock Retained earnings portion of profit retained for future use and not payed out to owners Common stock is the value of what owners paid in Income Statement story of transactions over a specific time period 0 Revenue sales transactions business and its customers 0 number of units sold x price of each unit 0 Expense transactions business and its suppliers such as resources people and capital 0 Net income is also profit loss difference between revenue and expense Expenses Variable Costs Cost of Goods Sold COGS The more you make the greater the cost based on volume produced 0 labor used to make product or service 0 material to make product or service 0 cost of keeping inventory don t worry about this 0 Period or Fixed Costs Operating Expenses The cost of being in business that month costs do not vary 0 sellingpromotion expenses 0 administrative expenses 0 RampD expenses 0 depreciation expense Contribution Margin money left over after COGS subtracted from revenue Kester 3 0 contribution margin period cost Earnings Before Interest Tax Net Margin 0 Foundation target is 30 contribution margin Net Income profit revenues all costs 0 If company reinvests income retained earnings 0 If company gives it to owners O Dividend to stockholders OR 0 Income to partners or a sole proprietor
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