ACTG 1P91 Lecture Notes - Lecture 1: Deferral, International Financial Reporting Standards, Sarbanes–Oxley Act

• School: Brock University
• Department: Accounting
• Course: ACTG 1P91
• Professor: Omar Roubi

Document Summary

Audience (dictates the rules/regulations we use during the accounting process) Private: ifrs or accounting standards for private enterprises (aspe) Assets = liabilities + shareholder"s equity (this equation must always balance) Assets = liabilities + contributed capital + retained earnings/ Assets = liabilities + contributed capital + beginning retained earnings. + revenue - expenses - dividends (revenue and expenses are part of the income statement) Residual ownership interest after liabilities have been accounted for (a-l=se) 3 types of activities: operating: - day-to-day care business => income statement, investing: - buy assets for use => balance sheet, financing: - raise capital - debt financing - equity financing => balance sheet. For a transaction, there has to be something coming from both ways. Assets: cash +,940, cash +4,630, cash -190. The following accounts are increased in the following sides, and then vice-versa if these accounts decrease. First we write all accounts that will debit. We write all accounts we credit indent.