BU127 Lecture Notes - Lecture 3: Current Asset, Current Liability, Repeated Measures Design
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BU127 Full Course Notes
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Lecture 3 how to memorize debit and credit. Any increase in assets/expenses is on the debit side**** Any decrease in assets/expenses is on the credit side**** Objective of financial reporting: to provide useful economic information to external users for decision making. Qualitative characteristics: fundamental (to be useful): relevance. Info can influence a decision: faithful representation. Similar results under independent measures: timeliness. Info has to be timely or else its useless: understandability. Allows reasonably informed users to see the significance of the info. Separate entity: activities of each business must be accountable for separate from the activities of its owners. Continuity (going concern): businesses are assumed to continue to operate into the near future. Unit-of-measure: accounting info should be measured and reported in the national monetary unit (ex. *quick test: the continuity assumption is inappropriate when: liquidation, company purchased new delivery truck (cid:449)ith list p(cid:396)i(cid:272)e (cid:1007)(cid:1009). 00 fo(cid:396) (cid:1007)(cid:1006),000 (cid:272)ash (cid:449)hat (cid:449)as the (cid:272)ost
