RSM100Y1 Lecture 5: Accounting 2
Document Summary
Penny: more and more expensive to produce the penny. Super bowl happened, restaurant and hotels in the area and the commerce have impact, the stock price. To make sure the numbers is correct. The audit is not related to the company. Public: public in trade, public company disclose their financial history. The value of what we own= the money invested in the. Accounting equation: assets=liabilities + equity business (cid:523)other people"s money plus our money(cid:524) Pay in the first place, not how much the item worth. Assets of services should initially be recorded at their actual cost. Recorded what you purchase, we record things we pay. Revenue should be recorded when it has been earned. Earned money means the revenue have show up on your income statement. For tax purpose, less revenue, pay fewer taxes. When the goods are delivered is when you report the should be matched with record. sale.
