[ACC 406] - Midterm Exam Guide - Comprehensive Notes for the exam (20 pages long!)

• School: Ryerson University
• Department: Accounting
• Course: ACC 406
• Professor: Kevin Palmer

Document Summary

It"s the a(cid:373)ou(cid:374)t of (cid:272)ash o(cid:396) (cid:272)ash e(cid:395)ui(cid:448)ale(cid:374)t sa(cid:272)(cid:396)ifi(cid:272)ed fo(cid:396) goods a(cid:374)d/o(cid:396) se(cid:396)(cid:448)i(cid:272)es that a(cid:396)e expected to bring a current or future benefit to the organization. Sometimes one asset is traded for another asset. Then the cost of the new asset is measured by the value of the assed given up (the cash equivalent). As costs are used up in the production of revenues, they are said to expire. The revenue per unit is called price. The(cid:396)e"s a te(cid:374)de(cid:374)(cid:272)(cid:455) to use (cid:272)ost a(cid:374)d price to mean the same thing b/c the price of an item is the cost to use. A(cid:272)(cid:272)ou(cid:374)ti(cid:374)g (cid:272)ou(cid:396)ses take the (cid:448)ie(cid:449)poi(cid:374)t of the o(cid:449)(cid:374)e(cid:396) of the (cid:272)o(cid:373)pa(cid:374)(cid:455), so the(cid:455)"(cid:396)e not the same. Price must be greater than cost in order for the firm to earn income. The cost to a customer is the revenue charged by the company supplying the product. Accumulating costs is the way that costs are measured and recorded.