Gceounting is o service act oF providing quaniitarive information, primarily Financial ia nature = hot follow GAAP ‘ Inberaet> sist —> ment Greta tiem eee - (FP General Purpose Financial Statoment® Ue leetahas +? fale + ohalatone Uo Lye y AS includes potential! lenders + Primary © AZ LOE Les contributing 40 the ates of the Company + others > emplayect customers, LEC, BIR vet et Sates xK sapsvoren sonibing exgnation Vow inte tose (KE) reporting entity # yucrdycal nity Control margin xk Ficed Cost cxxd franchiring Pratt ax ambine A tinar anal ebalement fetta 9 combration of anbipte Amertise tion FS under fou ome Fundamental RAH ely Pines wholly rund wubsi Aig ° Favtntut representation Ly can selideed Francia! Enhanung Aatement © Comparability —> endances relevance 4b verifiaw lity “> amhances Fithtal representation —> invotrad in the auditing process + rimeliness 7 enhanses relevance + yndterstondab;iity —> mbances rekvence Pe met preseny accounts Line_Hem$ — wet Sates wotes bh fi Sieben nb Mensurement over 350M yisin! Foe ase Ml ¥ pris Subsequent — yeah wh ined Ot . sary phe Cost ; pecarnctale deprriad On 3 stadia mints vtrnigft fine “PL PERS! PRS Sor HPS PRES bor SEs A |O~% & 106-280 lg a es 0 =aebaile are in NOTES IN FINAUCIAL timouNY © Srand arolS { 4 aN Financ al Sh ae ahs aa gaa © Tine Sern eee * classify if Current or Nomourrent yy grsmomnng wana, © ordwnod in Niquidity, mbar yar genera! purpese Statement Or amked Groen Wyeast yo fom once o year + preparation of Financia! Statement vadjustments . “aang Wen ar ai, wash + Management eck CVO & period of me, ¥ © pubtication VS CAPITALIZED Reporting Entity Bows of Preparation and Statement a Compbinnce Gale hunk Resluit, ~ Gah Inventories 7 twee weer - nek retinal ¢ value. yoy Qu INITIAL MeasugemeNnr SUSSEQUENT MEASUREMENT Expense Recognition ~Airecessecetion bebiten Ho CAF eurrad ‘and income = cystematic and rationed ateuation = ve Cuonomic veneit overting yet sipeepor thunter party. Acrounts Rertvable = financsal asset + jnstiqh! face value + cubsequent: net realirable value Sowece pourmente — gournal > Ledger > worksheet > Financial Statement b SPECIAL TOURNA LE QE CGI RESUPTE penyice Lo Cais Weeegipht Jparaal lsat invert cate pirpostrcent ourat ered regret 9 General Fournal Titancanhs oe Tie veeiy conponies eilgetion peccin p official Reeipt/ Gllection mesipt —> Cosh Receipt) Towraat Faget Cash Waener “> Gash Dis bustment zeurnal SEI ey ceri teen Ravan Receipts | Purchases Touran] => wawaily Prds et ring | Gendral_ tourna) Debit credit | 48 (2500 000 Sates 25 00 000 Allow Bad debts $0 000 Saks pierownt bovis 2, Cash 2 0 000 AR 2y S000 3 Gash 25 00060 AR 2430000 ‘Aiiow pad Dobbs So ceo 4 Allow Bd Debts 4o0o%0 Salvy 4000 cop 2 Rsturagd gous 300 ove Dad babisReceivable Financing - fapabitity to liquidate receivables ~ time value of money Pledging - using ecivobles for collateral fer a loan Cosme KX Notes Payable xx interest Exp OK cash xx Noles Payable XK cash XK generally, interest i peid montnty wrrowing wnere te ieteresd has lrrady bem deducted, fash XX Discount xX Notes Payable xx Effective terest —> interest paid Nominal or Stated laterest | interes? tated in the tontrnet CHAPTER 4 and