ACC 100 Study Guide - Final Guide: Accounts Payable, Financial Statement, Accounts Receivable

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Richard Deklerk

Document Summary

Primary: grow and gather raw materials (coal, mining) Secondary: raw materials are turned into products (car manufacturing) Tertiary: goods and services are sold to customers (walmart) Tax manager: ensure tax laws are followed. Creditors (banks): decided whether or not to lend the money. Qualities that stakeholders want financial information to have so they can use the information for decision making. Comparable: can compare the same business from year to year or between two different businesses in the same industry. Verifiable: anyone looking at the same information would determine similar amounts. Understandable: information presented is clear and concise. Specify how accountants must record, measure, and report information. Separate entity: only activities of the business are included. Unit-of-measure: all transactions have the same unit. Going concern: operations will continue well into the future. Historic cost: all purchases amounts are recorded properly. Time period: information is provided quickly and is still relevant to decision making.