BUS 251 Study Guide - Final Guide: Cash Flow Statement, Debits And Credits, Deferral

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 251
• Professor: Susan Bubra

Document Summary

Ch1: overview: business activities, financing activities: comes from investors and creditors b. Investing activities: buying and selling property, plant, and equipment (ppe). Also buying and selling shares of other companies: operating activities: sales and expenses c. i. Outflow: money goes out: financial reporting a. i. Revenue expenses = profit (net income) a. ii. Working capital = current assets current liabilities a. iii. Gross margin ratio : statement of changes in equity: changes in shareholders during accounting cycle b. i. 2 major components: share capital and retained earnings. b. ii. Accrued liability: the last few days" worth of wages in a fiscal period that are owed to the worker but not paid. Mc2; prepare journal entries: trial balance is a summary sheet, adjusting journal entries: usually things that you have used up within the period, depreciation of capital assets a. i. Credit: accumulated depreciation (contra account: expiration of prepaid expenses b. i. Credit: prepaid insurance: accrual of interest c. i.