AFM101 Chapter Notes - Chapter 2: Investment, Deferred Income, Accounting Equation

39 views2 pages
purplechimpanzee495 and 87 others unlocked
AFM101 Full Course Notes
30
AFM101 Full Course Notes
Verified Note
30 documents

Document Summary

Chapter 2- investing and financing decisions and the. The primary objective of external financial reporting is to provide investors and creditors with useful information to make sound financial decisions. The separate entity assumption states that business transactions are separate from transactions of the owners. The unit of measure assumption states that accounting information should be measured and reported in the national monetary unit. The continuity (going concern) assumption states that the businesses are assumed to continue to operate into the foreseeable future. The cost principle requires assets to be recorded at the historical cost, which is paid plus the current monetary value of all non-cash considerations also given in the exchange, on the date of the transaction. Elements of the classified statement of financial position. Assets- economic resource controlled by the entity, divided into current assets and non-current assets. Current assets are assets that will be used of turned into cash, normally within one year.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents

Related Questions