BU227 Study Guide - Midterm Guide: Debits And Credits, Historical Cost, Unobservable
Document Summary
The identification, measurement and communication of financial information about economic entities to interested persons. Information on results of economic activities (operating, investing, financing) Record, measure, classify, summarize, communicate, interpret and analyze. Let"s you know if a company is doing well. Shows the financial position of the firm at one point in time. Accounting entity the organization for which financial data are to be collected. Owner"s residual (leftover) interest in firm"s assets after deducting liabilities. Only when a corporation otherwise called owner"s equity". Expected to cause firm to payout assets or render services in future. Notes payable, accounts payable (paid within a year) Sale of goods/services, rent/interest from letting others use firm assets. Share capital the investment of cash and other assets in the business by the owners in exchange for shares. Retained earnings amount of earnings reinvested in the business. Other components reflect the change in the values of assets and liabilities over time.
