C4 Classify Accounts

Period reporting – The life of the business can be divided into even time periods so that performance can be measured
baker – one who makes and sells bread
Liabilities – Amounts owed to creditors.
Business entity – Applied when a business's financial information is recorded and reported separately from the owner's personal financial information
Dividend – payment of asset or resource created through profitable operations to the ownes
Statement of retained earnings – shows the changes in retained earnings over an accounting period
disclosures – measuring the value of future cash flows from oil and gas reserves for disclosure in supplementary information
In the short run, exchange rates look less volatile or noisy than they do in the long run. 
how to find net income/ net loss? – revenues-expense
Describe timeliness. Which characteristic is timeliness a component of? – Information is timely if there is no delay in the reporting of crucial information. Timeless is a component of relevance.
Anything of value that is owned – Asset
external failure costs – costs incurred because products fail to conform
to requirements after being sold to outside parties.
In the shоrt run, exchаnge rаtes lооk less volаtile or noisy than they do in the long run. 
Qualitative Characteristics: What are the Characteristics? – 1. Fundamental Qualities
A. Relevance
B. Faith representation

2. Enhancing qualities

*Certified Public Accountant (CPA)* – Public accountants who have met a state's education, experience, and examination requirements.
Order of the financial statements. – Income statement, statement of retained earnings, balance sheet, and statement of cash flows.
Withdrawls – assets taken out of a business for the owner's personal use

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