Exam (elaborations)
HBX Core Financial Accounting Exam 2024/2025 Questions With Completed & Verified Solutions.
- Course
- Institution
HBX Core Financial Accounting Exam 2024/2025 Questions With Completed & Verified Solutions.
[Show more]
Content preview
HBX Core Financial AccountingAssets=?
Liabilities + owner's equity
assets should balance liabilities and owner's equity
what are Assets?
resources like cash or equipment that are controlled by the organization
Previous
Play
Next
Rewind 10 seconds
Move forward 10 seconds
Unmute
0:03
/
0:15
Full screen
Brainpower
Read More
Liabilities
loan from a bank, wages, accounts payable to supplier: Any obligation that needs to be paid to a
third bank.
Owner's equity
control the business and make decisions, discretionary (not obligatory)
Owners' Equity = Assets - Liabilities.
transactions
taking it out a loan, paying invoices, selling merchandise
all transactions affect balance sheet
, Revenue
value that company is producing
The Matching Principle
The matching principle requires that a company match its expenses to the related revenues in
the accounting period to which they relate.
Suppose the Spicy Maya Hot Chocolate sold by Cardullo's was purchased for $8 from their
supplier.
assets go down, owner's equity go down
Buying on credit: IOU
Short term financing, like burrowing money from bank: 30 day pay day.
increase in assets, increase in Liabilities
then once they pay it both go down
Methods of accounting
cash-- recorded and cash: small businesses
accrual-- mostly all companies use, when merchandise is delivered revenue is recorded
Realization principle
if business performs the work it can recognized revenue even if it did not receive the cash.
long questions
so like yoga membership is 1200, when should this revenue be recognized?
evenly throughout the year!
liabilities increase!
Gift Cards
Assets go up, liabilities go up!
Memberships for the business
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 LEWIS12. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now