ACC 240 Chapter 3 Notes

ACC 240 Chapter 3 Notes - Accounting 240 Chapter 3 notes I....

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Accounting 240 Chapter 3 notes I. Terms A. Operating (cash to cash) cycle:      is the time it takes for a company to pay cash to suppliers,  sell goods and services to customers, and collect cash from customers. B. Time Period Assumption:      indicates that the long life of a company can be reported in  shorter time periods. C. Operations 1. Revenues:      are increases in assets or settlements of liabilities from ongoing operations 2. Expenses:      are decreases in assets or increases in liabilities from ongoing operations  incurred to generate revenues during the period D. Non-operations 1. Gains:      are increases in assets or decreases in liabilities from peripheral transactions 2. Losses:      are decreases in assets or increases in liabilities from peripheral transactions  E. Cash Basis Accounting:      records revenues when cash is received and expenses when cash 
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This note was uploaded on 04/02/2008 for the course ACC 240 taught by Professor Lewis during the Winter '08 term at Eastern Michigan University.

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ACC 240 Chapter 3 Notes - Accounting 240 Chapter 3 notes I....

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