ACC 210 Chapter Notes - Chapter 4: Income Statement, Common Stock, Current Asset

• School: Stony Brook University
• Department: Accounting
• Course: ACC 210
• Professor: Carl Allocca

Document Summary

Revenue < expenses == net loss: will generate negative equity. Accounts receivable; receivables and high turnover = you"re getting your money from the revenue you generated relatively quick: debt/obligation = liability unearned revenue. Situation: accountant hired for upcoming financial year but wants to be paid upfront in advance for 3 months (,000) received the cash dec. 31. Jan 31 gave audit for one month 20,000 is now income and the revenue for the month. Expired asset (in some situations) creates an expense. Current asset asset consumed before one year. Situation buy a desk for that"s supposed to live for 5 years. Depreciation value by the end of 4th year = . You decide that it"s beat up and want to get rid of it. The difference between original asset value () and the depreciation value () is the book value (). You sell it to someone who buys old furniture and you get .