ACCT 2001 Chapter Notes - Chapter 1: Balance Sheet
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ACCT 2001 Full Course Notes
Verified Note
67 documents
Document Summary
Notes not taken in detail- the major accounting bodies. Designed to make financial information more usable- makes acctg info more comparable between companies. Ethics- process that individuals use to evaluate their conduct in light of moral principles and values. Assets- everything of value held by a business. Value- the future usefulness to a business-cash, accounts receivable, supplies, etc. Accounts receivable- amounts owed to the business by customers who purchases goods/services on credit. The cost principle- assets be recorded at the price originally paid to acquire them; the historical cost. This may not be the amount what would have to be paid if the asset were purchased currently. The going-concern concept- a company will operate indefinitely unless there is evidence to the contrary. The assets used in the business were not acquired for sale, but for operations. Market values are generally not used in valuing assets for a going concern.
