Money Measurement Concept
Key Learning Points:
Money Measurement Concept - Only that information that are expressed in monetary terms are being recorded.
Entity Concept - A unit, which controls & prepares reports that is related to money or accounting reports.
Costs
A.) Nonmonetary Assets- Cash value not fixed by contract; Ex. Land. B.) Monetary Assets- Cash value is fixed by contract. Ex. money
Fair Value - An amount at which the asset could be exchanged in a present transaction between agreed parties.
A.) Liabilities- Anything that is to be paid in the future. It can be loans, debts, employees’ wages & etc. a.) Current Liabilities – Liabilities that are expected to be settled within 1 year of the balance sheet date. b.) Other Liabilities – Long-term debt. B.) Owner’s Equity – owner’s share of the assets in a business. C.) Shareholder’s Equity – company’s capital which is invested by shareholders.
Economic Resource – either cash or raw materials that can be sold or items that are going to be used for future activities that the company will gain money.
Balance Sheet – it is where you can the reported assets and equities of an entity at a specified time.
Assets – Anything that is owned by a company that can be sold to make cash. A.) Current Assets – assets owned by the business that can be turned into cash quickly such as: cash, stocks or money owed to the entity. B.) Fixed Assets – Assets that are needed for long-term usage for future cash inflows. C.) Intangible Assets – Assets that can’t be held or touch such as
Money Measurement Concept - Only that information that are expressed in monetary terms are being recorded.
Entity Concept - A unit, which controls & prepares reports that is related to money or accounting reports.
Costs
A.) Nonmonetary Assets- Cash value not fixed by contract; Ex. Land. B.) Monetary Assets- Cash value is fixed by contract. Ex. money
Fair Value - An amount at which the asset could be exchanged in a present transaction between agreed parties.
A.) Liabilities- Anything that is to be paid in the future. It can be loans, debts, employees’ wages & etc. a.) Current Liabilities – Liabilities that are expected to be settled within 1 year of the balance sheet date. b.) Other Liabilities – Long-term debt. B.) Owner’s Equity – owner’s share of the assets in a business. C.) Shareholder’s Equity – company’s capital which is invested by shareholders.
Economic Resource – either cash or raw materials that can be sold or items that are going to be used for future activities that the company will gain money.
Balance Sheet – it is where you can the reported assets and equities of an entity at a specified time.
Assets – Anything that is owned by a company that can be sold to make cash. A.) Current Assets – assets owned by the business that can be turned into cash quickly such as: cash, stocks or money owed to the entity. B.) Fixed Assets – Assets that are needed for long-term usage for future cash inflows. C.) Intangible Assets – Assets that can’t be held or touch such as