SMG AC 222 Study Guide - Midterm Guide: Accounts Payable, Deferral, Retained Earnings
14 Aug 2016
School
Department
Course
Professor
Document Summary
A theoretical view: accounting #"s = economic truth + measurement error + bias (intentional or unintentional) To reduce m. e. and b in order to show economic truth. Assets: economic resource that a company expects to help generate future cash inflows or help reduce cash outflows. Owners" equity: total assets less total liabilities (residual interest) Revenue: the increase in net assets resulting from selling products or services. Expenses: the decrease in net assets as a result of consuming or giving up resources in the process of providing products or services to customers. Expense decrease owners" equity. (2) financial accounting: balance sheet or statement of financial position. Statement of cash flows, statement of retained earnings/equity, and income statement are a period of time. Balance sheet (b. s. ) always in balance and has two sides -- scale. If assets and liabilities difference, offset show in s. e.
