[MGCR 211] - Final Exam Guide - Ultimate 117 pages long Study Guide!

639 views117 pages
29 Nov 2016
Department
Course
Professor

Document Summary

Financial accounting is a system that accumulates, processes, and reports information about an entity"s: performance (ex. profit or loss, financial position (ex. assets, liabilities, and shareholder"s equity, changes in financial position. Record transactions only when cash paid or received. Revenue is recorded only when the cash is received. You recognize revenue even when you receive an advance from a customer - however you still have to deliver the goods, revenue is not actually earned. Expenses are recorded only when cash is paid. For the past year you never paid your electricity bills even though you used electricity all year long. Because there is no cash payment your electricity expense will look like zero even though it is not. Can lead to misleading information for decision making: Revenue and expenses can be manipulated by timing the receipt and payment of cash.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents