BA 3340 Lecture Notes - Lecture 11: Accounting Information System, Issued Shares, Accounts Receivable
Document Summary
Current business statistics: gold = ,550. 00 per ounce, crude oil = . 00 per barrel, cash rate = 3. 75, exchange rates, usd = 0. 97, euro= 0. 78. Financial statements: statement of changes in equity, reports the movement in each class of shareholder"s equity during an accounting period, details contributed equity of owners and the retained earnings of a business. Accounting equation: assets + expenses = liabilities + owners equity + revenue. Adjusting entries: accrual accounting, revenues and expenses are recorded when they are earned and incurred, cash is never affected in adjusting entries. Adjusting entry after insurance is used for 4 months. 400: depreciation adjusting entries, the process of allocating the cost of long-lived assets such as buildings or equipment over their productive lives using a systematic and rational method. 10,000: closing the books/end of accounting cycle, permanent accounts, statement of financial position accounts. Items included in inventory: merchandise inventory, raw materials inventory, work in progress inventory, finished goods inventory.
