22107 Chapter Notes - Chapter 1-11: Cash Flow Statement, Accounts Payable, Retained Earnings
Document Summary
Liabilities is an obligation of a business. Investing activities e. g. buying and selling of assets: operating activities e. g. purchase of supplies, payment of employees and sales. 1: qualitative characteristics of accounting information, understandability ability to be comprehensible, relevance capacity to make a difference in decisions. Consistency compare or contrast the financial activities of the same entity over time: materiality , material = large enough to possibly affect decision making. Immaterial = small enough to not affect decision making: conservatism how accountants deal with uncertainty. Chapter 2 financial statements: business forms , sole proprietorship business owned by 1 person (most common type in australia), partnership two or more proprietors join together to own a business. Establishment by either a written or an oral agreement and can include any number of partners: company (or corporation) separate legal entity established by registering with.
