BUS1 170 Lecture Notes - Lecture 3: Accounts Payable, Promissory Note, Tax Rate
4 Apr 2016
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Basic financial statements- the accounting and financial regulatory authorities mandate the following four types of financial statements: income statement- provides the following information for a specific period of time (full year, quarterly) *start with revenue or the sales, then subtract gradually all income and expenses: balance sheet- contains information on a specific date of the following. Assets (everything of value the company owns) Analyzing a firm"s financial statement can help managers carry out three important tasks: assess current performance, monitor and control operations, plan and forecast future performance. Accountants use the following three fundamental principles when preparing financial statements: the revenue recognition principle, revenue should be included in the firm income statement for the period in which: i. ii. Its goods and services were exchanged for either cash or accounts receivable. An employee"s salaries are recognized when the product produced as a result of that work is sold, and not when the wages are paid: the historical cost principle a.
