ACTG 1P91 Lecture Notes - Lecture 2: Deferral, Current Liability, Investment

• School: Brock University
• Department: Accounting
• Course: ACTG 1P91
• Professor: Staci Kenno

Document Summary

Reporting investing and financing results on the balance sheet: chapter 2. Accounting is a language used to communicate. Anchor to which all other statements are tied. Details the financial position of the entity at a point in time. Source of resources at a point in time. Organization or activity for which accounting reports are prepared. One entity may be part of a larger entity. All information must impact 2 things dual-aspect of accounting. Resources presently owned by a business that will generate future economic benefits. Amounts presently owned by a business to creditors. The amount invested and reinvested in a company by its shareholders. + assets liabilities + sha(cid:396)eholde(cid:396)s" e(cid:395)uity + Increase decrease decrease increase decrease increase using using using using using using. Accounts increase on the same side as they appear in a = l + se. Assets increase on the left side on the left side of the account. Liabilities increase on the rights side of the account.