COMMERCE 1AA3 Study Guide - Midterm Guide: Retained Earnings, Current Liability, Historical Cost

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 1AA3
• Professor: Emad Mohammad

Document Summary

Beginning retained earnings +/- net income (loss) dividends. Operating cash flow +/- investing cash flow +/- financing cash flow = increase/ decrease in cash. Assets: recognition: future benefits, r & d expenses, rights to future benefits, human capital, quantifiable. Assets: measurement: historical cost, market value, present value of future cash flows. Assets: disclosure: current assets e(cid:454)pe(cid:272)ted to (cid:271)e (cid:272)o(cid:374)(cid:448)e(cid:396)ted i(cid:374)to (cid:272)ash (cid:449)ithi(cid:374) the (cid:455)ea(cid:396) o(cid:396) the (cid:271)usi(cid:374)ess"s ope(cid:396)ati(cid:374)g cycle. Long-term assets will be held longer than one year. Liabilities: recognition: past transactions, promise of payment, quantifiable, known date. Liabilities: measurements: monetary liabilities- future cash flows or the present value of future cash flows, non-monetary liabilities the expected cost of goods and services or the money received. Liabilities: disclosure: current liabilities de(cid:271)t pa(cid:455)a(cid:271)le (cid:449)ithi(cid:374) (cid:374)e(cid:454)t (cid:455)ea(cid:396) o(cid:396) the (cid:271)usi(cid:374)ess"s ope(cid:396)ati(cid:374)g (cid:272)(cid:455)(cid:272)le. Long- term liabilities- debts payable for more than one year from balance sheet date. Stakeholde(cid:396)"s e(cid:395)uit(cid:455: consists of: common stocks/shares, contributed surplus, retained earnings, accumulated other comprehensive income.