MGAB01H3 Study Guide - Final Guide: Cash Flow Statement, Price–Earnings Ratio, Balance Sheet
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MGAB01H3 Full Course Notes
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To close temporary accounts (revenues, expenses, dividends) First: determine if there is a change in cash due to a transaction. Operating (look for items in i/s + wc. Investing (look for items in lt assets) Financing (look for items in lt liab + accounts) These 3 accounts use debit to record an increase in the account, and use credit to record a decrease in the account. These 3 accounts use credit to record an increase in the account, and use debit to record a decrease in the account. Use trial balance to prepare fs (every account can only be used 1x in 1 fs) Capital assets need to use a contra account to record the decrease in value. Prepare an adjusted trial balance fs . Direct write off not consistent with ifrs/gaap principles. Merchandise purchases and sales using periodic & perpetual inventory. Perpetual: 2 steps (1. customer + 2. inventory adjustments) Fifo last purchased inventory stays closely matches replacement value.