Lecture notes for Accounting Module for University students
4 views 0 purchase
Course
Introduction to Accounting
Institution
The University Of Bradford (UoB)
This document contains notes from the lecture from one of the first lectures of the semester. It is clear to understand and will help build your knowledge of accounting.
Company distributing profits to shareholders is called dividends.
Retained profits are profits kept in order to be re-invested back into
the company. This means that the shareholders’ owners’ equity will
increase as the profits should be for shareholders.
To add on to accruals definition from last week, if a customer owes
money on credit to a company, they still call it as revenue earned as
they’ll eventually get the money.
Prudence / conservatism – Profits are not recognised until they are
realised, losses are provided for as soon as anticipated.
E.g., a company realises that someone that owes them £10,000 is
insolvent, then the company with the concept of prudence should
call the £10,000 a loss.
Even if someone owes money and isn’t insolvent, accountants will
say wait until they’ve paid and then recognise as in then count it.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller DistinctionKing21. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $5.79. You're not tied to anything after your purchase.