**TI82** TxtView file generated by CalcText - Kouriü íCHAPx1íëÿcompta chap 1Intro 1) economic entity activities of an entity should be kept separate and distinct frm the activites of its owner and all other economic entites 2) going concern companies are expected to last long enough to fulfill objectives and comitments 3) monetary unit money is the common dominator of economic activity 4) periodicity a company can divide its economic activites into artificial time periods 5) accrual basis transactions that change a companys financial statemznts are recorded in the periods in which the events occurs Autre ... B) primary financial statements a) income statement revenu = service revenue Expenses = salaries expense, rent, advertising, utilities = net income b) statement of changes in equity/ retained earnings statement -retained earnings = september1 -Add: net income -less dividends -retained earnings, september30 c)statement of financial position -Assets= equipment/ supplies/ accounts receivable/ cash -equity= share capital ordinary + retained earnings -Liabilities= accounts payable = total equity and liabilities d) statement of cash flows -cash flows from operrating activities = cash receipts from revenues + cash payments for expenses - cash flows from investing activities purchase of equipment -cash flows from financing activities: sale of ordinary shares payment of cash dividends -net increase in cash cash a the beginning of the period cash at the end of the period e) notes ÿÉ