Anne Marie, the owner of Anne’s Beauty Salon continues to ask you questions about her financial statements.
1. What is accounts receivable? Is it good?
2. I see these things called current assets and current liabilities. What are they ? Why show them?
3. I still don’t understand what the statement of retained Earnings is all about and why do I need it? What is retained earnings? What is that thing called a dividend? Is it an expense?