Chapter 2- Transactions on F.S Flashcards
1
Q
IFRS
A
Public companies
2
Q
ASPE
A
Private companies
3
Q
Cash basis accounting
A
revenues are only recorded when cash is received and expenses are recorded when cash is paid out
4
Q
Accrual basis
A
- economic reality
- recorded when revenues are earned and expenses when they are incurred
5
Q
Retained Earnings
A
Opening R.E
+ Net income
- Dividends
= Ending R.E
