MGMT 30A Lecture 1: MGMT 30A Week 1

• School: UC-Irvine
• Department: Management
• Course: MGMT 30A
• Professor: Machiavelli Chao

Document Summary

Cost principle: all assets are recorded at its original cost or purchase price; always verifiable. Monetary units only: only worry about money transactions; helps bc nonmonetary, we don"t know what to value it at. Report the assets, the liabilities, and the stockholders equity on a certain date. Assets must = liabilities + stockholders equity. Current assets: expects to use/turn into cash within the year. Intangible assets: can"t touch, future economic benefit. Stockholders equity: remaining assets of business after liabilities have been paid. Retained earnings: cumulative earnings or loss history. Detail revenues and expenses and resulting net revenue or loss. Rolls onto retained earnings part if balance sheet. An asset increase must be offset by a. T account has debits on left and credit on right. Debit balance: left side of account has more than right side. Stockholders equity (common stock, retained earnings, and revenue) An increase is recorded w debit, decrease is credit.