BU127 Lecture Notes - Lecture 1: Accrual, Financial Statement, Accounting Equation
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BU127 Full Course Notes
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Introduction in to accounting - january 4th, 2018: Assets, liabilities & shareholder"s equity are measured and reported at a specific point of. Revenues, expenses & cash flows are measured and reported for a specific period of. Ending balance of one accounting period becomes the beginning balance of the next accounting period. Beginning balance + increase decrease = ending balance. Going to focus on accrual basis accounting for this course. Example: you start a business to buy computer parts for sale. Used of your own savings for start-up fund. Close friend lends you that you are to pay back one year later. You bought computer parts costing that you"d like to sell at . Your neighbour wants to buy your computer but can"t pay until next week. Financial statements are prepared on accrual basis instead of cash basis. Assets of a business is financed by creditors, shareholders and reinvested earnings. Cpt 1 overview of four basic financial statements.
