BUSS1030 Lecture Notes - Lecture 2: Limited Liability, Cash Cash, Accounts Receivable
20 Jul 2018
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Lecture 2: no liability usually high risk e. g. mining companies, unlimited liability hardly any companies revenue recognition principle/expense recognition principle know how much a business spends (expenditure) to have products to sell (revenue) O revenue recognition principle: can"t have revenue unless a g/s is produced if not revenue, then it is a liability subsidiaries child companies. Current gives benefit for less than 12 months. Non-current gives benefit for greater than 12 months. Goodwill customer choice which is both intangible and non-current. Accounts receivable when company is owned money (fixed) When a customer has not paid yet (provides future economic benefit) Bills receivable negotiates when to pay inventories whatever is bought to sell trademarks / patency types of assets. Accounts receivable - promises of payment from customers to sellers. Often called credit sales or sales on account (or on credit) increased by credit sales and billings to customers, but are decreased by customer payments.
