The most difficult aspect of accounting is determining which events should be reflected in the accounting records and which are not. Events that cannot be reliably measured in monetary terms will not be reflected in the financial statements.
- Often, the most difficult aspect of accounting … is determining which events are to be reflected … in the accounting records, and which are not. … Suppose, for example, … that Burger King introduced a new … Big Mac clone at half the Big Mac price. … The proliferation of these Big Mac clones … can have a serious impact on the future of McDonald's. … However, events that cannot be … reliably measured in monetary terms … will not be reflected in the financial statements. … Since it would be virtually impossible … to quantify the impact of the Big Mac clones … on the future profitability of McDonald's, … that information will be excluded … from the financial statements. … While there is an obligation … to inform financial statement users … about this attack on the Big Mac, … the financial statements are not the place to do it. … The financial statements are only one part … of the information provided to users. … Information relating to the competitive environment, … product development, and marketing and sales efforts, …
- Reviewing financial statements
- Analyzing transactions
- Categorizing transactions
- Obtaining financing and buying equipment
- How revenue and expenses fit in the accounting equation
- Recording the sale of goods or services
- Posting journal entries to accounts
- The accounting cycle: step by step
Skill Level Beginner
1. Review of the Financial Statements
2. Fours Steps in the Bookkeeping Process
3. How Transactions Affect the Accounting Equation
4. The General Ledger
5. Illustration of the First Three Steps in the Accounting Cycle
The role of computers3m 44s
- Mark as unwatched
- Mark all as unwatched
Are you sure you want to mark all the videos in this course as unwatched?
This will not affect your course history, your reports, or your certificates of completion for this course.Cancel
Take notes with your new membership!
Type in the entry box, then click Enter to save your note.
1:30Press on any video thumbnail to jump immediately to the timecode shown.
Notes are saved with you account but can also be exported as plain text, MS Word, PDF, Google Doc, or Evernote.