Outline the accounting procedures involved in applying the direct-financing method.
Financial Accounting CH 1-4 were the accounting cycle; studied the service type of business CH 5 > merchandising business; remember the types of businesses are SMM (service, merchandising, manufacturing) 1. What is the function of a merchandiser Sells products, purchase inventory or products, donations (good for PR) a. Page 283 > difference between the income statements and BS i. IS > for service businesses, we use a single step IS (revenues – expenses = net income); for merchandising businesses, we use multiple step IS because we need to know more information ii. BS > for both we still have A = L + SHE; for merchandising businesses we will use