RSM100Y1 Lecture 10: Feb.4th Accounting I
Document Summary
The stock price of black berry went up by (cid:883)(cid:882)% Super bowl happened yesterday, so all the businesses related (cid:523)restaurants etc. (cid:524) had more business activities. Private companies are not publicly traded, so they do not need to disclose their financial statement. Assets or services should initially be recorded at their actual cost (cid:523)what they cost, not what they worth(cid:524) Reason: because things are worth differently to people; because it gives people reasons to cook the book; We record the sale of goods when the ownership has transferred. We record the sale of services when the services are performed. Companies want to show lower income when calculating taxes. Private companies especially. icliker: a customer bought an case of iphones on dec. (cid:884)(cid:884)nd and items are delivered on dec. (cid:885)(cid:882)th. When will you record the sale? (cid:523)recognize the revenue(cid:524) Explanation: because this is the day that ownership is transferred.
