What are two methods of recording accounts receivable transactions when a cash discount situation is involved? Which is more theoretically correct? Which is used in practice more of the time? Why?
CHAPTER 1: INTRODUCTION TO FINANCIAL STATEMENTS PURPOSE OF CHAPTER: Accounting plays a vital role in providing financial information to businesses and in personal life Learning Objectives: Identify various forms of business organization and the uses of accounting information 1. Forms of business organization 2. Users and uses of financial information 3. Ethics in financial reporting Explain the 3 principle types of business activity 1. Financing activities 2. Investing Activities 3. Operating Activities Describe the 4 financial statements and how the are prepared 1. Income statements 2. Retained earnings statement 3. Balance Sheet 4. Statement of cash flow 5. Interrelationships of state
