BU127 Chapter Notes - Chapter 3: Cash Cash, Financial Statement, Interest Expense
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BU127 Full Course Notes
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Document Summary
Chapter 3: operating decisions and the statement of earnings. Goals: include elements of income, i. e. revenue targets. Strategies: overall plans, plan companywide operations in terms of elements of earnings (revenues & expenses, disclosed in mgt discussion and analysis section of annual report. Measurable indicators: comparison to goals (i. e. revenue and expenses) Cycle begins when company receives goods to sell (or in service, has employees work0. Length of time of completion depends on nature of business. Means that the long life of a company can be reported in shorter periods. To meet needs of decision makers, report financial info for relatively short time periods (monthly, quarterly, annually) To measure net earnings for specific period of time. Operating cycle is repeated continuously until it ceases activities. Measure how it is doing based on its goals. The long life of a company can be reported over a series of shorter time periods.
