Accounting 100

average assets – (ending assets+beginning assets)/2
IAS 38 Intangible Assets – * An asset is a resource: controlled by a business as a result of past events; and from which future economic benefits are expected to flow to the business
* Eg. patents, copyrights, customer lists, licenses, marketing rights
* RECOGNISED when it is probable future economic benefits attributable to the asset will flow to the business; and the cost of the asset can be measured reliably
* NOTE: Internally generated goodwill must NEVER be recognised as an asset or recorded in the FS
* MEASURED initially at cost in the BS. A company can later choose either cost or revaluation method to value asset:
* Cost – shown in BS at cost less depreciation/IL
* Revaluation – shown in BS at revalued amount
* Can be depreciated like tangible assets – SL or DB
Cash Basis Accounting. – An accounting practice in which revenue is not recognized in the accounting records until received and in which expenses are not recognized until paid.
Income earned but not received is called – Accrued income
CONTRA ACCOUNTS – AN ACCOUNT THAT ALWAYS HAS A COMPANION ACCOUNT AND WHOSE NORMAL BALANCE IS OPPOSITE THAT OF THE COMPANION ACCOUNT
double-declining-balance depreciation – produces a large amount of depreciation in the first year of an asset's life and progressively smaller levels of expense in each succeeding year
The income statement account most likely affected by an AIS investment in customer relationship management (CRM) would be:
Unit of measurement – Applied when business transactions are stated in numbers that have common values, that is, using a common unit of measurement
An entry on the credit side of a liability account indicates that the account has been – Increased
The incоme stаtement аccоunt mоst likely аffected by an AIS investment in customer relationship management (CRM) would be:
owner's equity – The owner's "interest" in the business, the equivalent to assets minus liabilities.

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