BUS 020 Lecture Notes - Lecture 1: Accounts Payable, Retained Earnings, Promissory Note
Document Summary
Assets = liabilities + equity: resources worth $ by sale/use = creditor"s claim to assets + owner"s claim to assets. Business = activities -> to provide members of economic system-> w/ goods & services: through use of land, labour, & capitals. Us responsible for notion of corporation: corporation a legally separate unit from business; owners not accountable, assets are more protected, business never ends. Accounting records monetary information to report to various users: info used by internal & external users, e. g. management, trade associations, banks, gov"t, in this course, creditors and investors most important users of this info. Payable = liabilities: accounts payable, rent payable, notes payable. Equity: residual claim to assets, a l: retained earnings, what business earned claimed by owners. *study balance sheet examples in lecture notes. Chinese last to adopt double-entry accounting method in 1990. Income statement: revenue expenses = net worth: assets earned assets used net increase, revenue = cash or receivables.
