Chapter 3 Lecture Class Notes with Problems and SOLUTIONS

Chapter 3 Lecture Class Notes with Problems and SOLUTIONS -...

This preview shows page 1 - 3 out of 8 pages.

Chapter 3 Lecture What we’ve learned so far : Basic financial statements Journal entries affecting the balance sheet (investing / financing activities) T-accounts Balance sheet preparation What’s next? Revenue / expense recognition principles Journal entries affecting the income statement (operating activities) T-accounts Income statement preparation Definitions: Revenues: Increases in assets or settlement of liabilities from ongoing operations (e.g., sales or services). Expenses: Decreases in assets or increases in liabilities from ongoing operations (e.g., rent expense or cost of goods sold). Gains: Increases in assets or settlement of liabilities from peripheral transactions (e.g., gain on sale of building) Losses: Decreases in assets or increases in liabilities from peripheral transactions (e.g., loss on sale of equipment)
Image of page 1

Subscribe to view the full document.

When do we recognize revenues and expenses?
Image of page 2
Image of page 3

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern