COMMERCE 1AA3 Lecture Notes - Lecture 3: Accounts Receivable, Sociedad General De Autores Y Editores, Startup Company

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Aadil Merali Juma

Document Summary

Do chapter 1ab 2ab 3ab quiz will be similar. Do(cid:374)"t use (cid:272)o(cid:373)(cid:373)as or (cid:271)ra(cid:272)kets or (cid:374)egati(cid:448)e u(cid:374)less (cid:374)egati(cid:448)e is allo(cid:449)ed i(cid:374) a(cid:374)s(cid:449)er, (cid:374)o dollar sig(cid:374) for quiz. Income statement made for period of time, cost of goods sold is first expense on income statement, Second statement, retained earnings is also for a period of time, max 1 year. Can be negative, especially for start-up companies, to busy paying expenses without any sales. Dividends are distribution of income to the owners or shareholders. Assets have 4 benefits: current assets e. g. list of accounts online all of items under current assets, property plant & equipment (ppe) historical/original/acquisition cost, long term investments. Foreign currency is an example of current assets. We use fair value or market value. Accounts receivable are measured by net realizable value. Present value of future cash flows use to measure bonds (chp9)