MGCR 211 Lecture Notes - Revenue Recognition, Retained Earnings, Net Income
20 Nov 2012
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Accounting= analysing and preparing financial reports, way of providing financial info for businesses, how well the business is doing. Accumulated other comprehensive income: a component of shareholders" equity representing the cumulative amount of unrealised increases and decreases in the value oh the net assets of the entity. Once realized, the gains/losses are transferred to retained earnings. = measuring + analysing the performance of the company. At glance we can see increase, decrease good or not good. Now common size the data= converting everything into percentages. Base= what our sales are ( we calculate everything en fonction des sales) Matching principle: (gaap) we have to match expenses with revenues in the same period. Recognize exp with related sale ( adv exp can be recognized the next year, when sales happen). Indicates what net income what generatd based on sales of the year. View example conclusion no chnge from previous year, consistency in operations. Performance ration, gross profit ration: (gross profit= sales-
