ACCTG 101 Lecture Notes - Lecture 1: Accounts Payable, Accrual, Current Liability
Document Summary
Used by stock market investors, banks/lenders, managers, gov assessing tax. Managers, bookkeepers/clerks, accountants responsible for info on financial statements. Report on credibility of the enterprise"s financial statement. Must avoid preparing statements in order to credibly audit. Recording revenues and expenses at the time cash is received or paid. Incorporate complexities by recording revenues and expenses when they occur, not when cash received. Include all cash receipts, past payments, future cash receipts and payments, measure value of incomplete transactions, Shows financial performance at any given pt in time. Future eco benefits controlled by organisation because of past transactions. E. g. bank account records, accounts receivable (amounts owing for g/s), inventory, property, plant and equipment. Can be debts or amounts due to suppliers or estimates of future payments based on past agreements. Accounts payable, wages payable, provision for employee entitlements, long term loans, current liabilities (payable liability, interest bearing liability) Amount owner has directly invested + retained profits (cumulative amount of profits.
