BU127 Lecture 3: Chapter 3
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BU127 Full Course Notes
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Understanding the business affect the statement of earnings: how do business activities, how are these activities, how are these activities statement of earnings? recognized and measured? reported on the. Purchase or manufacture products or supplies on credit. Deliver product or provide service to customers on credit. The operating (or cash-to-cash) cycle is the time it takes for a company to pay cash to suppliers, sell those goods and services to customers, and collect cash from customers. To meet the needs of decision makers, we report financial information for relatively short time periods (monthly, quarterly, annually). Time period: the long life of a company can be reported over a series of shorter time periods. The statement of earnings includes up to three major sections: Results of continuing operations can be presented in one of the two formats. Single step format list all revenues followed by all expense items and then shows the difference between revenue and expenses.
