MGMT 1A Lecture Notes - Lecture 5: Cash Flow Statement, Cash Flow, Deferral
Document Summary
Mgmt 1a lecture 5 notes - cash flow statement and accounting principles. Revenue & expense accounts are considered temporary subdivisions within retained earnings. Temporary accounts get closed up at the end of the year and put into equity account under retained earnings of that year. As a result, the next year, temporary accounts will start from 0. Accrual accounting: revenue - is recognized when the products are sold or the services are provided (when earned), which may or may not be when cash changes hand, expenses - are recognized using the . Inventory: non current assets, long lived assets i. ii. Intangible assets: brand, goodwill, patent, liabilities, current liabilities: liabilities that only lasts for less than a year (in no specific order) i. Payables: accounts payable, taxes payable, notes payable. Unearned revenue: non current liabilities: liabilities that will last more than a year i. ii. Loans (debt: equity, presented in order of preference, types of equity accounts i. ii.
