ACC 310F Lecture Notes - Lecture 12: Accrual, Trial Balance, Current Liability

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23 Apr 2018
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Indirect method accounting equation (starbucks: goal is finding net cash from operations from income statement (1) example - starbucks has cash in, cash out, and. Owners equity + revenue - expense (1) a - l = pow + r - e (2) a, l, and pow are from balance sheet while r and e are. Income statement: to take make this equation compatible with cash flow: (1) turn change in assets to (change in cash + change in. Non-cash assets: change in cash = change in liabilities - change in non-cash. But, they do not show how the additions were financed or paid for. (2) income statement shows net income. The cash flow gave a more accurate showing because it stayed up to date with the cash flow: adjustments to net income, take net income and add back depreciation and amortization.

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