ACC 100 Lecture Notes - Lecture 6: Current Asset, Gross Margin, Intangible Asset

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Beavis Alison

Document Summary

Retailer: earns profit by reselling goods/providing services to customers. Wholesaler: buys large quantities of goods from manufacturers, warehouses them, and resells them to retailers. Do not typically sell to the public. Internal stakeholder: works for the business ie. employees. External stakeholder: outside of the business, their objectives relate to decisions they will make about money and how the business can affect them. Faithful: truthful, free of error, complete, neutral. Relevant: applicable, pertinent, helps to predict or confirm. Comparable: can compare from year to year or between other businesses. Verifiable: anyone who looks would determine the same thing. Separate entity: only the activities of the business are included in the financial info. Unit of measure: all transactions are reported using the currency of the location of the head office. Going concern: the business will continue operations into the future. Historic cost: all purchases are recorded at the amount that was paid for them.