ADM1340 Chapter 2 Notes.docx

Cost constraint pervasive constraint that ensures

This preview shows page 2 - 3 out of 3 pages.

Cost Constraint: pervasive constraint that ensures that the value of the info provided in financial reporting is greater than the cost of providing it Going Concern Assumption: assumes that a company will continue to operate for the foreseeable future Elements of Financial Statements: broad categories or classes that financial statements are grouped into according to their economic characteristics (which include assets, liabilities, equity, income, and expenses) o RELATING TO FINANCIAL POSITIONS: Assets, Equity, Liabilities o RELATING TO MEASURING PERFORMANCE: Income, Expenses Measurement: Quantifying items so that they can be presented in the body of the financial statements o Historical Cost: 2
Image of page 2

Subscribe to view the full document.

the amount of cash or cash equivalents paid or received in a transaction at their time of acquisition. o Fair/Current Value: the price that would be received to sell an asset should be recorded at current value (the price that would be paid to purchase the same asset or paid to settle the same liability) o In choosing between these two, apply the concepts of relevance and representational faithfulness BE2-1: LO1 Current assets long term investments pp&e intangible assets current liabilities non-current liabilities share capital retained earnings ACCOUNTS SFP CLASSIFICATION Accounts payable Accounts receivable Accumulated depreciation Buildings Long-term investment Cash Current asset Common shares Share capital Current portion of mortgage payable Patents Dividends declared Income tax payable Long-term investments Land Long-term investment Inventory Supplies Mortgage payable, due in 20y Prepaid insurance Unearned revenue Intangible asset TO LEARN MORE AND GET ONENOTE, VISIT . 3
Image of page 3
You've reached the end of this preview.
  • Summer '07
  • xxx
  • Balance Sheet, Generally Accepted Accounting Principles

{[ snackBarMessage ]}

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