MGMT 1A Chapter Notes - Chapter CR: Accrual, General Ledger, Cash Flow
Document Summary
Have he opposi e balance of he normal acco n balance. Red ce he acco n o which hey are a ached. Ex. con ra-asse s have cr. balances, con ra-liabili ies have dr. balances. Ex. if considering (cid:343)cash(cid:344) acco n all n mbers on lef (cid:343)dr(cid:344) side wo ld be. Iii. creating financial statements from the general ledger (t - accounts) Each s a emen has a 3 line heading: 1s line = name of he company. 2nd line = name of he s a emen . Period statements : cover a specific period of ime ((cid:343)for he year ended 12 / 31 / xx(cid:344)) . Position statements : are as of a specific poin in ime ((cid:343)12 / 31 / xx(cid:344)) Cash method : ( ypically sed for yo r personal ax re rn) Recognize reven e when yo receive he cash. Ex. income s a emen comparison wi h cash vs. accr al basis.
