MGMT 20000 Study Guide - Comprehensive Final Exam Guide - Accounts Receivable, Balance Sheet, Matching Principle
20 Nov 2018
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Financial accounting: going to parties outside of the company. Objective: verifiable (used to make a decision)(how much you sold) Emphasis: historical (reporting what happened in the past) Info: planning and control (do you need more employees, how much steel do i need to buy for tomorrow) Lo1: understand the business activities that financial accounting measures. Transactions must affect the financial position of the business to be recorded in a financial accounting system. Ex: the receipt of a sales order from a customer is not recorded until the product or service is provided to the customer. A business event that is not considered a recordable transaction is when the product has not been received yet. Ex: a customer places an order for a product but hasn"t received it yet. Signing a contract is not recorded in an accounting system. Until the product is provided in the contract, it"s not recorded. You record a payment when it is delivered, not when:
