MKTG-250 Lecture Notes - Lecture 11: C Shell

• School: American University
• Department: Marketing
• Course: MKTG-250
• Professor: Girish Ramani

Document Summary

Identifies records, )nd communic)tes relev)nt, reli)ble, )nd comp)r)ble inform)tion )bout )n orgs economic )ctivities. M)n)gers: to control ) comp)nys oper)tion, to m)ke informed business decisions. Outsiders: to ev)lu)te whether ) business is creditworthy, t)x )ccounting. M)n)gement: concerned with prep)ring (cost )n)lyses, profit)bility reports, budgets) Assets - )ny things of v)lue owned or used by ) business (two types of )ssets: current ( )nd long term (property, equipment) , )nything th)t c)n be converted into c)sh within one ye)r is current) Li)bilities - cl)ims )g)inst ) firm s )ssets by creditors. Owner s equity - portion of ) comp)ny s )ssets th)t belongs to the owner )fter oblig)tions )ll creditors h)ve been met. Expenses incurred in producing revenues be deducted from th)t revenue. Accru)l b)sis: revenue is recognised when you m)ke ) s)le or provide ) service, not when you get p)id. C)sh b)sis: records revenue only when money from the s)le is )ctu)lly received.