[BU127] - Final Exam Guide - Everything you need to know! (41 pages long)

• School: WLU
• Department: Business
• Course: BU127
• Professor: Chialin Chen

Document Summary

Increase in property and equipment: decrease in trade payables. Increase in cost of sales: credit examples, decrease in notes receivable. Review: the statement of financial position: a(cid:272)(cid:272)ou(cid:374)ti(cid:374)g e(cid:395)uatio(cid:374): assets = lia(cid:271)ilities + sha(cid:396)eholde(cid:396)"s e(cid:395)uity, assets, ending balance and beginning balance, changes in cash. Then add cash beginning balance to find cash ending balance: sha(cid:396)eholde(cid:396)"s e(cid:395)uity, contributed capital beginning balance. That is the ending balance: retai(cid:374)ed ea(cid:396)(cid:374)i(cid:374)gs bala(cid:374)(cid:272)e ((cid:373)o(cid:374)ey that stays with the (cid:272)o(cid:373)pa(cid:374)y that is(cid:374)"t distributed to investors) + net earnings for the year (revenues - expenses) Principle: each asset is recorded at the historical cash-equivalent cost (because is factual and verifiable) which is cash paid plus the current monetary value of all non-cash considerations also given on the date of the exchange, ex. If you pay ,000 cash for a new car and trade in an old won (valued at.