RSM219H1 Study Guide - Final Guide: Financial Statement, Cheque

• School: UTSG
• Department: Rotman Commerce
• Course: RSM219H1
• Professor: Dragan Stojanovic

Document Summary

If the business might go out of service, this must be mentioned in the financial statements: revaluation model: allows a change in asset value based on market conditions. Ifrs only: objectivity principle: business accounting must be done on the basis of clear, verifiable evidence. Match expense with revenue: principle of conservatism: don"t understate or overstate assets. If two possible values, choose lower value: fair value principle: ifrs allows assets to be revalued after some time. A good or service is sold for cash. A good or service is sold on account. Party that sells is vendor and party that buys is purchaser. Show how many sales were made on difference credit cards. A cheque issued to pay/withdraw money from the company. Summary of all the cheques/recipts the company receives from customers for on account payments. The bank adds/takes away money from the account.