MGT120H5 Chapter Notes - Chapter 4: Canadian Securities Administrators, Internal Auditor, External Auditor
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MGT120H5 Full Course Notes
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Farmers use cash basis (when cash transaction occurs) , usually accrual based is used (record whether or not cash has been exchanged) What were the accounting principles: revenue principle record revenue when it has been earned and at what amount. What were the 3 types of adjustments: deferrals, depreciation and accruals. What ratios do we look at? profit margin ratio (return on sales: current ratio (can company cover short term debt), debt ratio (can company pay all their debt), A company collected 1 year of rent in advance on aug 1, 2010. The entry made at that date was a debit to cash and a credit to unearned revenue of 24,000. At dec 31, 2010, the adjusting entry is: Concept of internal control refers to: audit procedures used to detect theft, policies of accounting standards board, policies and procedures of a company designed to safeguard assets, a method used to reconcile the bank statement.
