MGAB01H3 Study Guide - Final Guide: Financial Statement, Financial Accounting, Accounting Period

• School: UTSC
• Department: Financial Accounting
• Course: MGAB01H3
• Professor: H Levy-Shalev

Document Summary

Topic include: financial statements and business decision. Investing and financing decisions and the statement of financial. Position: operating decisions and accrual versus cash basis accounting, end of the accounting period, sales discount, bad debt and internal control. Section1 3 understanding business and accounting, financial statement: three business activity, operating. Follow this formula assets = liability + shareholder"s equity: statement of comprehensive income (income statement) Start at zero: statement of changes in equity. Record the dividends, profit and so on: statement of cash flows. Since for most time, cash and revenue is not at same time, so there is bias. Which one is a financing activity: a company lend money from a bank, a company buy a car to delivery, a company sell their product, a company pay for the rent fee. C, d are operating activities, b is investing activity: c is correct. A: income statement shows the whole period situation.