MGMT 1A Lecture Notes - Lecture 6: Income Statement, Historical Cost, Financial Statement
Document Summary
(this is on the midterm: accounting assumptions, monetary unit, economic entity, period of time. Usually the national currency of the reporting country. Us dollar (have to convert, might lose money in the process) Information is reported in a company"s financial statements at least on an annual basis: at least a quarterly 10-q, annually 10-k i. ii. i. i. i. ii. i. ii, going concern (continuity) The company will continue to operate in the near future. Indefinitely: accounting principles, accrual accounting - relating to the financial effects of transactions, events and circumstances having cash consequences to the period in which they occur rather than the period when the cash receipts or payments occur, revenue recognition. Revenues should be recognized when: realization has taken place, at the time of the sale, earned, measurable & collectable, e = mc 2 . Realization is the process of converting non-cash resources into cash or rights to cash iii.
