MGT120H5 Chapter Notes - Chapter 2: Deferral, Accounts Payable, Retained Earnings
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MGT120H5 Full Course Notes
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Document Summary
A transaction is any event that has a financial impact on a business and can be measured: not everything is a transactionlike an adit"s not a transaction until someone actually buys a product. Transactions provide objective information about the financial impacts on a company. Every transaction has two sides: giving something and receiving something. We always record both sides of this transaction. Must be able to assign a dollar amount to a transaction to record it in the books. The account - the record of all the changes in a particular asset, liability or shareholder"s equity. Assets - diff asset accounts: cash and cash equivalents - means money and any medium exchange including bank account balances, paper currency, coins, gic"s and cheques. Accounts receivable - selling goods or services and receives a promise for future cash collection: notes receivables - usually specify an interest rate. It is like an ar, but it"s more promising since the customer signs the note.
