MGAB01H3 Lecture 8: MGAB01 Week8 review of chapter4 and part of chapter 6

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: H Levy-Shalev

Document Summary

Any question about midterm pls emailing professor before next saturday. In midterm review, we don"t need to know multiple choice 14 and 15. Question is on icq#4 (2) cp4-11 (e) correct. It"s timing mistake, because in the end, no error. (f) correct. 2016, 2017 understate assets permanent mistake (g) If buy a equipment, depreciation should be considered. The most important number investors looking for: earning. Because its accounting cycle is too long, so we cannot provide useful financial information in short period. We can use percentage of competition to calculate its value. The percentage of competition: construction revenue: the price of goods* the change of progress, construction income: use total income, percentage of competition, prior period recognized income, construction expense: revenue income. Sometimes to encourage customer to pay entire amount or pay early, there is discounts for customer to pay early. When record on journal entry, we can record as cash discounts.