SEC 3 poa notes

Eects ©wzkai Doubleentry Eectsof non-adjustment andadjustment Dr other income(-l)Cr Incomereceivedinadvance Eectsof non-adjustment of incomereceivedinadvanceIncomeReceivedInAdvance Eect onOtherIncome Eect onProfit Eect onCurrentLiability Not adjusted Overstates Overstates Understates Correctlyadjusted Decreases Decreases Increases Dr Incomereceivable(+A)Cr Other Income(+l) Eectsof non-adjustment of incomereceivableOther Incomereceivable Eect onOtherIncome Eect onProfit Eect onCurrent Asset Not adjusted Understates Understates Understates Correctlyadjusted Increases Increases Increases Dr Other Expenses(+Ex)Cr ExpensePayable(+L) Eect Of non-adjustment of expensespayable ExpensePayable Eect onExpenses Eect onProfit Eect onCurrentLiability Not adjusted Understates Overstates Understates Correctlyadjusted Increases Decreases Increases Dr Prepaidexpenses(+A)Cr Otherexpenses(-Ex) Eect of non-adjustment of prepaidexpensesPrepaidexpenses Eect onexpenses Eect onProfit Eect onCurrent Asset Not adjustes Overstates Understates Understates Correctlyadjusted Decreases Increases Increases

©wzkai Dr Impairment lossoninventory(+Ex)Cr Inventory(-A) Eect of non-adjustment of impairment lossoninventoryImpairment lossoninventory Eect onotherexpenses Eect onprofit Eect onCurrent Asset Not adjusted Understates Overstates Overstates Adjusted Increases Decreases Decreases IncreaseinallowanceDr Impairment lossontradereceivables(+Ex)Cr Allowanceforimpairment oftradereceivables(+CA) DecreaseinallowanceDr Allowanceforimpairment oftradereceivables(+CA)Cr Impairmentlossontradereceivables(-Ex) Eect of non-adjustment of allowance Didnot adjust Eect onotherexpenses Eect onprofit Eect oncurrent assets Increaseinallowance Understates Overstates Overstates Decreaseinallowance Overstates Understates Understates Eectsof adjustment of allowance Afteradjustment Eect onotherexpenses Eect onprofit Eect oncurrent assets Increaseinallowance Increases Decreases Decreases Decreaseinallowance Decreases Increases Increases Dierent methodsof depreciation Eectsof usingdierent methodsof depreciationMethodofDepreciation Eect onotherexpenses Eect onProfit Eect onNon-currentAsset Straight Line Equaldepreciationexpenseeveryyear Profit decreasesbyanequalamount everyyear Net bookvaluedecreasesbyanequalamount everyyear Reducingbalance Higherdepreciationexpenseinearlier yearsandreducesover time Profit decreasesbyahigheramount inearlier years Net bookvaluedecreasesbyahigher amountinearlier years

TheoriesAccountingentity: Theactivitiesof abusinessareseparatefromtheactionsoftheowner. All transactionsarerecordedfromthebusinesspoint of view. Accountingperiod: Thelifeof abusinessisdividedintoregular timeintervals Goingconcern: Abusinessisdividedintoregular timeintervals. Accrual basisof accounting: Businessactivitiesthat haveoccurred, regardlessof whether cashispaidor received, shouldberecordedintherelevantaccountingperiod Consistency: Onceanaccountingmethodischosen, thismethodshouldbeusedtoall futureaccountingperiodst