ACCT 2101 Chapter Notes - Chapter 2: General Ledger, Trial Balance, Accounting Equation
Document Summary
External users (creditors/investors): provide relevant financial information to investors/creditors in making decisions about providing resources to the entity. Many people are interested in assessing the amount, timing and uncertainty of a business"s future cash inflows and outflows. Separate entity assumption: each business"s activities should be accounted for separately from the activities of its owners, etc. Going concern assumption/continuity assumption: assume that the business will continue operating long enough to meet commitments and plans. Monetary unit assumption: each business unit entity accounts with the national monetary unit. Mixed-attribute measurement model: measuring different assets and liabilities of the balance sheet. Assets: probable future economic benefits owned or controlled by an entity as a result of past transactions or events. Current assets: resources that will be used/turned into cash within a year. Non-current assets: resources that will be used/turned into cash in more than a year. Land, buildings, equipment, depreciation, long-term investments, intangible assets investments, intangible assets.
