PowerPoint - Ch.3

How are these activities recognized and measured

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: ess activities affect the income statement? How are these activities recognized and measured? recognized How are these activities How reported on the reported income statement? 3-7 P&L teaches you a LOT about the business The Operating Cycle Begin (step 1) Purchase or Purchase manufacture products or supplies on credit. credit. (4) (2) Receive payment Receive from customers. from Pay Pay suppliers. suppliers. Deliver product Deliver or provide service to customers on credit. credit. (3) 3-8 The Operating Cycle Definition: The time it takes for a company to pay Definition: The time it takes for a company to pay Definition: Definition: cash to suppliers, sell goods & services to cash to suppliers, sell goods & services to customers, and collect cash from customers. customers, and collect cash from customers. Otherwise known as “Cash-To-Cash” cycle. Otherwise known as “Cash-To-Cash” cycle. Otherwise Otherwise 3-9 Elements on the Income Statement Revenues Revenues IIncreases in assets or settlement of Increases in assets or settlement of n...
View Full Document

This note was uploaded on 10/03/2013 for the course ACC 230 taught by Professor Auerbach,m during the Fall '08 term at CSU Dominguez Hills.

Ask a homework question - tutors are online