BMGT 220 Lecture Notes - Lecture 3: Revenue Recognition, Income Statement, Tral
18 Sep 2015
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Document Summary
Revenues and expenses are reported in the income statement in the period in which they were earned or incurred. Supports reporting revenues when the services are provided to customers. Revenues and expenses are reported on the income statement in the period in which cash is received or paid. Analysis and updating of accounts at the end of the period before the financial statements are prepared. Journal entries that bring the accounts up to date at the end of the accounting period. Unrecorded revenues that have been earned, but cash has yet to be received. Unrecorded expenses that have been incurred, but cash has yet to be paid. Physical resources that are permanent or have a long life. Periodic transfer of the cost of a fixed asset to an expense account during its expected useful life. Portion of the cost of a fixed asset that is recorded as an expense each year of its useful life.
