Class Notes (834,568)
Canada (508,607)
Business (3,286)
BU127 (123)
Lecture 3

BU127 Lecture 3 on The Statement of Financial Position and Transaction Specifics

3 Pages
162 Views
Unlock Document

Department
Business
Course
BU127
Professor
David Scallen
Semester
Fall

Description
DAY3-MONAYSEPT16(CHPT2) Intermsofaccounts: Debit-isanaddition Credit-isaloss Asset-adebitis(+),acreditis(-) LiabilitiesandSE-acreditis(+),adebitis(-)ex.whenabusinesspaysbackaloan,theirdebtgoesdown Ifnetincomeispositive,shareholderequityincreases,thereforeincomeiscredit Revenues(increaseincome)arecredit Expenses(decreaseincome)aredebits **Considertheincomestatementapartofthefinancialposition-incomestatementrelatesdirectlyto retainedearnings ObjectiveofFinancialReporting: - Qualitative characteristics: -relevancy(makesadiff.indecision,predictions)-fundamental -faithfulrepresentation(complete,neutral,freeofbiasorerror)-fundamental -comparability(acrosscompanies)-enhances -verifiability-enhances -timeliness(reportedbeforeitlosesitsusefulness)-enhances -understandability(significanceshouldbeclear)-enhances - Elements of statements: -asset -liability -shareholders’equity -revenue -expense -gain -loss Assumptions: - Separate Entity - businessactivitiesareseparatefromthoseofowners - Unit of Measure -accountinginfoshouldbemeasuredbynationalmonetaryunit - Continuity -businessincontinuingoperationsintoforeseeablefuture Costprinciple-assetsarerecordedatthehistoricalcost Noteonelements:Unearnedrevenueisaliability,Inventoryisacurrentassetregardlessofthetime neededtoproduceandsellit,prepaidexpenseisacurrentasset Ethics: -reportingtiedtolegislation Natureofbusinesstransactions: - External events -anexchangebetweenbusinessandoutsideparties - Internal events -notanexchangeb/wb
More Less

Related notes for BU127

Log In


OR

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


OR

By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.


Submit