10. -Contractual provisions that may affect future cash flows eg terms and conditions of borrowing agreements commitments to buy or sell material amounts of assets. They look for meaningful relationships between events and financial results they study the effect of various alternatives they search for significant trends that may throw some light on what will happen in future. The accountants thus try to match the revenue appearing in the income statement will all the expenses incurred in generating that revenue. Or the accounting equation, since all double entry accounting is based on it. It must reflect compensation for the sale of goods or the performance of services.  Other types of revenue are –  interest, dividends, received on shares owned and rent received. A balance sheet is so called because its two sides must always balance. For this reason therefore the current market value of the assets are of little importance to  decision makers. LECTURE NOTES ON E-COMMERCE &CYBER LAWS COURSE CODE:BCS-402 . Increase in owners equity Assets have economic value because they contain service benefits that can be used in future  operations or sold to another entity. For the investors they are interested with the profitability of the firm to know that they are earning the required return. Five transactions of Bruno Company are summarized below in equation form, with each of the five transactions identified by a letter. BCOM 2nd Semester “Financial Accounting” 2015 Question Papers. Notes of operating system. Financial Accounting. Revenue should be recognized at the time goods are sold or services are rendered. Hi B.Com 5th semester students, On this thread we have listed the complete collection of notes and eBooks for all the subjects in fifth semester of the BCom. In other words the two sides are the same view of the business property. These financial statements are concise, perhaps only three or four pages for a large business. Accounting principles may also be termed as standards assumptions conventions or concepts. BCOM 2nd Semester Question Papers 2014 to 2015, B.Com Financial Accounting Subject Study Material, B.Com Cost Accounting Subject Study Material, BCOM 2nd Semester ” English ” 2015 Question Papers, 2014 Sixth semester Bcom Principles and Practice of Auditing Question Paper. Get BCom video classes from CAKART.in. Thereafter, additional audits must be made periodically if the securities are to continue being traded. Required fields are marked *. .The assets of Joytech Company amounted to $96,000 on December 31 of year 1, but c) increased to $136,000 by December 31 of Year 2. ACCOUNTING GRADE 12 SESSION (LEARNER NOTES) INFORMATION 1. Effects of transactions on the Accounting Equation. On Sept 30 Robert paid 3,000 in cash to general equipment. Providing review after you have downloaded the file is highly recommended. The principal service offered by a public accountant is auditing. They depend on the auditor to verify the dependability of the information the statements contain. This information is used in making economic decisions. Business Models of E-Commerce; Model Based on Transaction Type, Model Based onTransaction Party – B2B, B2C, C2B, C2C, E-Governance. Learn about the most important principles of accounting concepts such as bookkeeping, the double entry system, accruals and matching principles, how to prepare financial statements, and more. Liabilities include such thins as amount owed to suppliers for goods or services purchases on credit ( accounts payable) , amount borrowed from Banks or other lenders (notes payable), amount owed to employees for salaries and wages etc. Sharing is caring! It should be noted that not all business events can be measured and described in monetary terms. Book-keeping means the recording or of transactions , the record making phase of accounting. B.Com Financial Accounting Subject Study Material 5. In this day of increasing complexity in income and other tax laws and continued high tax rates, few important business decisions are made without consideration being given to their tax effect. Liabilities -Owner paid his daughter fees using business money………………………. Sept 1 Started a business by depositing Ksh. Owners equity is the owners interest in the assets of the business. List the following four column headings on a sheet of paper as follows: Transaction Total assets Liabilities                          Owner’s Equity. This means Accounting includes the design of accounting systems, preparation of financial statements, audits, studies , development of forecasts, income tax work, computer applications to accounting processes, and the analysis and interpretation of accounting information as an aid to making business decisions. Step 8: On Sunday while visiting a friend who was going out of business and entering military service, Johnstone had an opportunity to buy for $600 cash some office supplies which had originally cost $1,000. Sept 5, an opportunity arose to buy from xyz company a complete office building which had to be removed to permit the construction of a freeway. 14th Sept purchased office furniture and equipment on credit form general equipment inc. for 5,400 – new asset and incurrence of liabilities. Sold equipment for cash at a price equal to its cost. Bangalore University. accounting statistics communication economics environment law coast accounting income tax corporate law public finance principle of management fundamental of entrepreneurship corporate accounting auditing money and financial system information technology financial management principle of marketing and all types business notes ccsu meerut and dbrau agra b.com all notes pdf … The title controller results from the fact that one of the chief uses of accounting  data is to control the operations of a business. Whenever the owner of the business transfers cash or other assets to the business, the owner’s equity increase. Note that the equality of the two sides of the equation was maintained throughout the recording of the transactions. Financial Accounting can be defined as the analysis classification and recording of financial transactions and the ascertainment of their effect on the performance and financial position of an organisation /business/ firm / economic entry. 1. a) Beta Company has total assets of $256,000 and the owner’s equity amounts to $64,000. 1500 received from the drugstore. Accounts must ensure that all material items are properly reported  in the financial statements. Any interest in yoga or exercise or play sports regularly? Agreed that the whole amount to be paid in three months. Materiality refers to the relative importance  of an item or an event.  An item is “material “ if knowledge of the item might reasonably influence the decisions of users of the financial statements. Subscribe to our YouTube channel to get all videos for your exam. What percentage of course you have finished well so far roughly? Regardless of type of asset, it represents revenue. 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