MGMT 1A Chapter Notes - Chapter CR: Accrual, Financial Statement
Document Summary
Usually the national currency of the reporting company (usd) Going concern (continuity) : the assumption that the company will continue its owners (needs to be from the perspective of the company) least on an annual basis to operate in the near future (we assume a business will operate indefinitely) Accrual accounting : relating 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) Recognized at the point of sale, not necessarily when we get the cash (accrual basis of accounting) Total expenses involved in obtaining revenue in the period must be computed. Must disclose any information that will influence the actions of a decision. 2. and related ( matched against ) the revenues recorded in the period financial statement users should be disclosed as the revenue is recognized.
