BU127 Lecture Notes - Lecture 2: Financial Statement, Current Asset, Income Statement
6
BU127 Full Course Notes
Verified Note
6 documents
Document Summary
Investing and financing decisions and the statement of financial position. An accountant is a trained professional who can design information systems, analyze complex transaction, and interpret financial data. Almost all accounting numbers are influenced by estimates. Financial statements really report the cost of assets, liabilities, and shareholder equity. To provide useful economic information to external users for decision making and for assessing future cash flows. Separate entity: activities of the business are separate from activities of owners. Continuity (going concern): the entity will not go out of business in the near future. Unit-of-measure: accounting measurements will be in the national monetary unit (i. e. , $ in. Historical cost: cash equivalent cost given up is the basis for the initial recording of elements. Elements of the classified statement of financial position. Shareholder"s equity: financing provided by owners and business operations. Revenue: increase in assets or settlement of liabilities from ongoing operations. Expense: decrease in assets or settlement of liabilities from ongoing operations.
