ACCG100 Lecture Notes - Lecture 7: Financial Statement, Accounts Payable, A Question Of Balance

• School: Macquarie University
• Department: Accounting and Corporate Governance
• Course: ACCG100
• Professor: Colly He

Document Summary

Lecture 7 (11/04/2019) financial accounting for business: preparing and interpreting. Accounting; is a process of identifying, measuring, recording and communicating economic transactions and events of a business operation (carlon et al. High volume of sales: financial position; information about the financial resources controlled by the entity. Information about the entity"s financial structure e. g. what is the total liability: cash movements; information about the entity"s ability to generate cash flows e. g. cash inflows vs. cash outflows. Reports financial performance for a specific time period (e. g. for the month ended, for the year ended, etc. ) Reports financial position at a specific point in time (e. g. as at 30 june) Represents the accounting equation (assets = liabilities + equities) Two alternative presentation formats (same information: narrative format (vertical) preferred in accg100, account format (horizontal) Assets and liabilities are classified as current and non-current. Current assets: expected to be sold, converted to cash or consumed within 12 months (e. g. cash, accounts receivable, inventory)