Accounting Chapter 1

going concern assumption – unless there is obvious evidence to the contrary, a firm is expected to continue operating for the foreseeable future
Asset – An economic resource controlled by the entity because of past transactions that future economic benefit is expected to flow from
residual value – estimanted value of an asset after all the allowable depreciation has been taken
Financial statements – Periodic reports published by
the company for the purpose of providing information
to external users.
When a bond is issued at a lower rate of market interest than the stated rate – cash received is higher than maturity balue
Double declining balance & Sum of the years digits – methods of depreciation that allow the business to recover the cost early in the life of the asset include
Students will complete at least 1 chapter every week. Most weeks, we will cover 2. 
Note Receivable. – A written promise of a customer to pay the business a sum of money at a future date.
What are the requirements of the Companies Act 2006? – 1. True and fair view – Accounts should give a true and fair view of the performance and its financial position. This overrides all other requirements in the preparation of accounts.
2. Format of disclosure – Both the balance sheet and the income statement are obliged to be presented in prescribed formats.
Anything of value that is owned – Asset
return on assets – net income/ avg. assets
Certified Check. – A check that carries the guarantee of the bank that sufficient funds are available to pay the check when it is presented.
Students will cоmplete аt leаst 1 chаpter every week. Mоst weeks, we will cоver 2. 
Equipment – Tangible non-expendable personal property including exempt property charged directly to the award having a useful life of more than one year and an acquisition cost of $5000 or more per unit. However, consistent with recipient policy, lower limits may be established.
supplies – current asset, BS, debit
Criteria for an asset – Must be probable that future economic benefits will eventuate and it must be possible to reliably measure the cost or value of the asset

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