AFM101 Midterm: SOS AFM101 Midterm Review Notes Fall 2014-1

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM101
• Professor: Eddie Dupont

Document Summary

Notes to financial statements: required by financial accounting standards, further explain the numbers in the financial statements, explain accounting policies used by management of company, contain supporting schedules and calculations, contain additional important non quantitative disclosures. Chapter 2: investing and financing decisions and the balance sheet. The conceptual framework: used to make connections to lead us from purpose of financial statements to components and characteristics of financial statements and the methods and assumptions management use to create financial statements. Basic elements: standards define elements directly related to measurement of financial position, assets, liabilities, shareholder"s equity, revenue, expenses, etc. Explain which, when, and how financial elements and events should be recognized, measured, and presented. Basic accounting principles: cost principle, revenue recognition, matching, full disclosure. Elements of the classified statement of financial position. Current assets: use within the next year or operating business cycle.