[COMM 457] - Midterm Exam Guide - Everything you need to know! (18 pages long)
Document Summary
Communication of financial information to 3rd parties for decision-making. Potential 3rd parties who may rely on f/s. Creditors (someone who owes money from the business ie. supplier, bank, government) Does not have to share f/s if its not a public company. Prepared as a point in time as at *specific date* Investing activities (where does the company puts its cash) Financing activities (where did you get the cash from) Something that will effect an entity but has no immediate effect on the accounting equation. Must be recorded as it has an immediate effect on the accounting equation. Transaction: entity issues 10000 common shares for cash. Company incurred ,000 of rent expense for the month. If they don"t have assets chances are they cant pay you back in a timely manner. Costs incurred in the process of generating income. Record expenses when you pay an item (payment)
