ACTG 2010 Chapter Notes - Chapter 2: Current Liability, Financial Statement, Faithful Representation
Document Summary
Fundamental qualitative characteristics: for info to be useful. Relevant: confirms or corrects info in the past. Entity gives info that excludes info of the owner and other entities (do not put personal spending of owner with business activities) Going concern: entity that will continue operations in the foreseeable future. Periodic reporting assumption: meaningful financial statements provided for periods of time shorter than entity"s life (example: annually or quarterly) General financial statement intended for use by the general public. Material if the omission/misstatement affects the judgement of others. Not examples: employees, advertising, trademarks, brand names. Non-current: used up in over one year. Liabilities: entity"s obligations to pay money/provide goods: obligation to pay/provide goods, result of a past transaction/economic event, economic sacrifice to settle. Trade and other payables (amounts owed to suppliers) Customer deposits (customers pay in advance for goods) Dividends payable (payments from corporation to it"s shareholders)
