The document provides an overview of analyzing transactions in accounting. It discusses key concepts like the double-entry accounting system where every transaction has a debit and credit recorded, and how this is represented with T-accounts. It also shows how the basic accounting equation can be expanded to include the five main financial categories of assets, liabilities, equity, revenues and expenses. An example is then provided of recording business transactions for a sole proprietorship using double-entry accounting.
This document provides supplemental investment information for Allstate's financial results for Q4 2008. It discusses Allstate's actions to mitigate investment risks and optimize returns, including reducing exposures to financial and real estate sectors. It also analyzes realized capital gains and losses, including $1.93B in net losses from impairments, changes in intent, derivatives, and limited partnerships. Finally, it provides details on problem investments, collateralized securities, and accounting classifications.
provision, contingent liabilities and contingent asset reportingAnqur Rauth
This document provides an assignment on provisions, contingent liabilities, and contingent assets. It includes an introduction defining key terms, objectives and scope. It discusses the recognition of provisions when an entity has a present obligation from a past event that will likely require resources and a reliable estimate can be made. Provisions differ from other liabilities in their uncertainty of timing and amount. Obligations can arise from legal contracts or statutes, or constructive obligations from an entity's past practices. Provisions are measured at management's best estimate and reviewed at each reporting date. Contingent liabilities are potential obligations that are not recognized due to uncertainty, while contingent assets are potential benefits.
- Net revenues for Ameriprise Financial declined to $6.97 billion in 2008 from $8.56 billion in 2007 due to lower fee revenue from declining client assets and reduced client activity in the weak market. The company reported a net loss of $38 million for 2008 compared to net income of $814 million in 2007.
- Despite the difficult market conditions, Ameriprise Financial's business remains sound due to its conservative risk management approach and strong balance sheet fundamentals including $34 billion in diversified assets, $6 billion in cash, and $0.7 billion in excess capital.
- The company continues to execute on its strategy focused on financial planning, serving clients through its network of over 12,000
With funders and other stakeholders turning even more attention to an organization’s audited financial statements, it is essential that management “own” these documents and use them to their greatest advantage. In the span of a few, impersonal pages, an organization needs to clearly convey programmatic priorities and unique financial realities.
This session will walk attendees through the fundamentals of nonprofit financial presentation and provide specific tips for working with your auditors and improving the clarity of your statements. Attendees should have a copy of their organization’s statements to reference during the webinar. A sample statement will also be available for those unable to obtain their own in advance.
- Credco is a credit card company that provides financial summaries for 2005-2001 including revenues, provisions for losses, interest expense, taxes, and net income.
- Key assets include credit card receivables and loans, while key funding sources are commercial paper, medium and long-term debt securities, and bank credit facilities.
- Credco aims to maintain high credit ratings to ensure access to capital markets, and uses proceeds from debt to invest in liquid assets like Treasury securities for backup liquidity.
Contingent liabilities, commitments and provisions in oil industryHamdy Rashed
What is the different between contingency, commitment and provision, how disclose the Joint venture minimum exploration payment or obligation in the financial statements
Chapter 2 a further look at financial statementsTeachKnight
This document provides an overview of key sections from Chapter 2 of a financial accounting textbook. It discusses the following:
- The classified balance sheet, outlining the standard classifications of assets (current assets, long-term investments, property/equipment, intangible assets), liabilities (current, long-term), and stockholders' equity.
- Ratio analysis and how ratios are used to analyze a company's profitability, liquidity, and solvency by expressing relationships between financial statement items.
- How the income statement is used to analyze a company's profitability through computations like gross profit margin and net income ratios.
- The objectives covered in this chapter, which include identifying sections of the
Defending Against Bankruptcy Avoidance Actions (Series: COMPLEX FINANCIAL LIT...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/defending-against-bankruptcy-avoidance-actions-2/
This document provides supplemental investment information for Allstate's financial results for Q4 2008. It discusses Allstate's actions to mitigate investment risks and optimize returns, including reducing exposures to financial and real estate sectors. It also analyzes realized capital gains and losses, including $1.93B in net losses from impairments, changes in intent, derivatives, and limited partnerships. Finally, it provides details on problem investments, collateralized securities, and accounting classifications.
provision, contingent liabilities and contingent asset reportingAnqur Rauth
This document provides an assignment on provisions, contingent liabilities, and contingent assets. It includes an introduction defining key terms, objectives and scope. It discusses the recognition of provisions when an entity has a present obligation from a past event that will likely require resources and a reliable estimate can be made. Provisions differ from other liabilities in their uncertainty of timing and amount. Obligations can arise from legal contracts or statutes, or constructive obligations from an entity's past practices. Provisions are measured at management's best estimate and reviewed at each reporting date. Contingent liabilities are potential obligations that are not recognized due to uncertainty, while contingent assets are potential benefits.
- Net revenues for Ameriprise Financial declined to $6.97 billion in 2008 from $8.56 billion in 2007 due to lower fee revenue from declining client assets and reduced client activity in the weak market. The company reported a net loss of $38 million for 2008 compared to net income of $814 million in 2007.
- Despite the difficult market conditions, Ameriprise Financial's business remains sound due to its conservative risk management approach and strong balance sheet fundamentals including $34 billion in diversified assets, $6 billion in cash, and $0.7 billion in excess capital.
- The company continues to execute on its strategy focused on financial planning, serving clients through its network of over 12,000
With funders and other stakeholders turning even more attention to an organization’s audited financial statements, it is essential that management “own” these documents and use them to their greatest advantage. In the span of a few, impersonal pages, an organization needs to clearly convey programmatic priorities and unique financial realities.
This session will walk attendees through the fundamentals of nonprofit financial presentation and provide specific tips for working with your auditors and improving the clarity of your statements. Attendees should have a copy of their organization’s statements to reference during the webinar. A sample statement will also be available for those unable to obtain their own in advance.
- Credco is a credit card company that provides financial summaries for 2005-2001 including revenues, provisions for losses, interest expense, taxes, and net income.
- Key assets include credit card receivables and loans, while key funding sources are commercial paper, medium and long-term debt securities, and bank credit facilities.
- Credco aims to maintain high credit ratings to ensure access to capital markets, and uses proceeds from debt to invest in liquid assets like Treasury securities for backup liquidity.
Contingent liabilities, commitments and provisions in oil industryHamdy Rashed
What is the different between contingency, commitment and provision, how disclose the Joint venture minimum exploration payment or obligation in the financial statements
Chapter 2 a further look at financial statementsTeachKnight
This document provides an overview of key sections from Chapter 2 of a financial accounting textbook. It discusses the following:
- The classified balance sheet, outlining the standard classifications of assets (current assets, long-term investments, property/equipment, intangible assets), liabilities (current, long-term), and stockholders' equity.
- Ratio analysis and how ratios are used to analyze a company's profitability, liquidity, and solvency by expressing relationships between financial statement items.
- How the income statement is used to analyze a company's profitability through computations like gross profit margin and net income ratios.
- The objectives covered in this chapter, which include identifying sections of the
Defending Against Bankruptcy Avoidance Actions (Series: COMPLEX FINANCIAL LIT...Financial Poise
In the event of a bankruptcy, the debtor or trustee may opt to take legal action in order to recover money or property that was transferred by the debtor prior to going bankrupt. These actions, whereby such transfers are effectively reversed, are referred to as “avoidance actions.” In this webinar, the expert panel discusses the applicable provisions of the Bankruptcy Code, common avoidance actions, and key considerations when planning for and defending against these actions.
To view the accompanying webinar, go to: https://www.financialpoise.com/financialpoisewebinars/on_demand_webinars/defending-against-bankruptcy-avoidance-actions-2/
The document discusses analyzing and recording transactions. It covers the key steps which are:
1) Analyzing each transaction from source documents.
2) Recording relevant transactions in a journal.
3) Posting journal information to ledger accounts.
The document provides reminders and outlines for an accounting class, including assigning homework on the accounting equation and types of business activities. It reviews key concepts like the accounting equation, the three types of business activities (operating, financing, investing), and how financial statements summarize the results of accounting transactions. Examples are provided to illustrate accounting entries for various financing, investing, and operating transactions.
400 25,000 7,500 –2,125
Bal. 400 25,000 7,500 –2,125 –800 –450 –275
g.
Bal. 400 25,000 7,500 –2,125 –800 –450 –275
1-37
5
Describe the financial
statements of a corporation
and explain how they
interrelate.
1-38
5
Financial Statements
- Balance Sheet
- Income Statement
- Statement of Retained Earnings
- Statement of Cash Flows
These statements provide information about a
company's performance and financial position.
They interrelate by presenting a
Principal accounting - Ch02 analyzing transactionArfan Fahmi
The document provides objectives and content for analyzing transactions in accounting. It discusses accounts and their characteristics, debit and credit rules, analyzing transaction effects on financial statements, preparing trial balances, and discovering and correcting errors. It also covers horizontal analysis to compare financial statements over different periods.
This document provides definitions and explanations of key accounting concepts and terms:
1. It defines the accounting equation as Assets = Liabilities + Owner's Equity and explains T accounts.
2. It lists the three main financial statements - the income statement, balance sheet, and statement of cash flows - and provides brief descriptions of each.
3. It also explains the accounting cycle, types of adjusting entries, closing entries, special journals, shipping terms, bank reconciliation format, and various ratios and leverage calculations used in accounting.
The document discusses key concepts related to analyzing business transactions and their impact on a company's balance sheet. It introduces the balance sheet framework of assets equaling liabilities plus stockholders' equity. Several examples are provided of journal entries for common business transactions and their posting to T-accounts to illustrate how the accounting equation remains balanced. The objectives are to understand how specific business activities affect balance sheet accounts and how companies track changes through journal entries and T-accounts.
The document discusses key concepts related to analyzing business transactions and their impact on a company's balance sheet. It introduces the balance sheet framework of assets equaling liabilities plus stockholders' equity. Several examples are provided of journal entries for common business transactions and their posting to T-accounts to illustrate how the accounting equation remains balanced. The objectives are to understand how specific business activities affect balance sheet accounts and how companies track changes through the use of journals and T-accounts.
The document provides an introduction and overview of accounting principles and the accounting process. It discusses key concepts such as:
- What accounting is and its basic features
- The double-entry system of accounting and rules for debit and credit entries
- The basic steps in the accounting process including recording transactions, classifying, summarizing, and interpreting reports
- Key accounting documents like vouchers, journals, ledgers, and trial balances
- How basic financial reports like the income statement and balance sheet are prepared
The summary outlines the essential high-level information about accounting fundamentals and the accounting cycle contained within the document.
1. The document discusses accounting concepts such as accounts, debits and credits, T-accounts, and the double-entry accounting system.
2. It explains how transactions are recorded in journals and posted to ledger accounts using debits and credits to satisfy the double-entry principle.
3. Examples of accounting entries are provided to illustrate how specific transactions affect asset, liability, equity, revenue and expense accounts.
The document discusses key accounting concepts such as assets, liabilities, owner's equity, balance sheets, income statements, and statements of cash flow. It provides examples of how to prepare these core financial statements for a small repair shop business. Specifically, it shows how to calculate owner's equity by subtracting liabilities from assets on the balance sheet. It also demonstrates how to organize revenue and expenses to calculate net income on the income statement.
The document provides an overview of basic financial statements:
1) It introduces the three primary financial statements - the balance sheet, income statement, and statement of cash flows. The balance sheet provides a snapshot of assets, liabilities, and equity on a given date. The income statement shows revenues and expenses over a period of time. The statement of cash flows details sources and uses of cash.
2) It provides an example balance sheet for a sample company, Vagabond Travel Agency, as of December 31, 2018 to illustrate the components of a basic balance sheet.
3) It walks through a series of transactions for an example company, Overnight Auto Service, to demonstrate how transactions impact the accounting equation
The document provides details on recording business transactions for Pioneer Advertising Agency using journal entries. It lists 11 transactions in chronological order from January 10 to October 31, including C.R. Byrd investing cash to start the business, purchasing office equipment, receiving cash from a client in advance, paying rent and insurance, purchasing supplies on credit, hiring employees, Byrd withdrawing cash, paying employee salaries, and receiving cash from a client for services. For each transaction, the general journal is updated with debits and credits to the appropriate accounts.
1) The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, transactions, debits and credits, and the key financial statements.
2) Sample transactions are presented for a new business that purchases equipment, supplies, earns revenue, and pays expenses. Journal entries are provided to record each transaction.
3) Accounting is defined as a system that identifies, records, and communicates financial information about an entity. The accounting process includes recording economic events, classifying data, preparing financial statements, and analyzing and communicating results.
1) The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, transactions, debits and credits, and the key financial statements.
2) Sample transactions are presented for a new business that purchases equipment, supplies, earns revenue, and pays expenses. Journal entries are provided to record each transaction.
3) Accounting is defined as a system for identifying, recording, and communicating financial information about an economic entity. It involves recording economic events, classifying and summarizing data, and preparing financial reports.
1. The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, assets, liabilities, and owner's equity as building blocks of accounting.
2. Sample transactions are presented for a new business called Softbyte to demonstrate how accounting records economic events and their impact on the basic accounting equation.
3. The accounting process includes identifying business transactions, recording the financial effects of the transactions, and preparing accounting reports to analyze the entity's performance and financial position.
1) The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, transactions, debits and credits, and the key financial statements.
2) Sample transactions are presented for a new business that purchases equipment, supplies, earns revenue, and pays expenses. Journal entries are provided to record each transaction.
3) Accounting is defined as a system that identifies, records, and communicates financial information about an entity. The accounting process includes recording economic events, classifying data, preparing financial statements, and analyzing and communicating results.
This document discusses what banks look for when determining whether a small-to-medium enterprise (SME) is "bankable" for loans. It outlines the 5 C's of credit that banks evaluate: Character, Capacity, Capital, Collateral, and Conditions. SMEs need to demonstrate their willingness, capacity, risk management practices, and financial stability to satisfy these criteria. The document provides tips for SME owners to prepare documentation like financial statements and business plans for initial bank meetings to discuss cash flow-based or scorecard-based lending options.
This document provides information about a financial accounting course at Eelo University in Borama, Somaliland. It introduces the lecturer, Professor Abdi Ali Hassan, who holds a B.Sc. and MBA in Strategic Management from the University of Nairobi. It also provides Professor Abdi's contact information.
The document discusses analyzing and recording transactions. It covers the key steps which are:
1) Analyzing each transaction from source documents.
2) Recording relevant transactions in a journal.
3) Posting journal information to ledger accounts.
The document provides reminders and outlines for an accounting class, including assigning homework on the accounting equation and types of business activities. It reviews key concepts like the accounting equation, the three types of business activities (operating, financing, investing), and how financial statements summarize the results of accounting transactions. Examples are provided to illustrate accounting entries for various financing, investing, and operating transactions.
400 25,000 7,500 –2,125
Bal. 400 25,000 7,500 –2,125 –800 –450 –275
g.
Bal. 400 25,000 7,500 –2,125 –800 –450 –275
1-37
5
Describe the financial
statements of a corporation
and explain how they
interrelate.
1-38
5
Financial Statements
- Balance Sheet
- Income Statement
- Statement of Retained Earnings
- Statement of Cash Flows
These statements provide information about a
company's performance and financial position.
They interrelate by presenting a
Principal accounting - Ch02 analyzing transactionArfan Fahmi
The document provides objectives and content for analyzing transactions in accounting. It discusses accounts and their characteristics, debit and credit rules, analyzing transaction effects on financial statements, preparing trial balances, and discovering and correcting errors. It also covers horizontal analysis to compare financial statements over different periods.
This document provides definitions and explanations of key accounting concepts and terms:
1. It defines the accounting equation as Assets = Liabilities + Owner's Equity and explains T accounts.
2. It lists the three main financial statements - the income statement, balance sheet, and statement of cash flows - and provides brief descriptions of each.
3. It also explains the accounting cycle, types of adjusting entries, closing entries, special journals, shipping terms, bank reconciliation format, and various ratios and leverage calculations used in accounting.
The document discusses key concepts related to analyzing business transactions and their impact on a company's balance sheet. It introduces the balance sheet framework of assets equaling liabilities plus stockholders' equity. Several examples are provided of journal entries for common business transactions and their posting to T-accounts to illustrate how the accounting equation remains balanced. The objectives are to understand how specific business activities affect balance sheet accounts and how companies track changes through journal entries and T-accounts.
The document discusses key concepts related to analyzing business transactions and their impact on a company's balance sheet. It introduces the balance sheet framework of assets equaling liabilities plus stockholders' equity. Several examples are provided of journal entries for common business transactions and their posting to T-accounts to illustrate how the accounting equation remains balanced. The objectives are to understand how specific business activities affect balance sheet accounts and how companies track changes through the use of journals and T-accounts.
The document provides an introduction and overview of accounting principles and the accounting process. It discusses key concepts such as:
- What accounting is and its basic features
- The double-entry system of accounting and rules for debit and credit entries
- The basic steps in the accounting process including recording transactions, classifying, summarizing, and interpreting reports
- Key accounting documents like vouchers, journals, ledgers, and trial balances
- How basic financial reports like the income statement and balance sheet are prepared
The summary outlines the essential high-level information about accounting fundamentals and the accounting cycle contained within the document.
1. The document discusses accounting concepts such as accounts, debits and credits, T-accounts, and the double-entry accounting system.
2. It explains how transactions are recorded in journals and posted to ledger accounts using debits and credits to satisfy the double-entry principle.
3. Examples of accounting entries are provided to illustrate how specific transactions affect asset, liability, equity, revenue and expense accounts.
The document discusses key accounting concepts such as assets, liabilities, owner's equity, balance sheets, income statements, and statements of cash flow. It provides examples of how to prepare these core financial statements for a small repair shop business. Specifically, it shows how to calculate owner's equity by subtracting liabilities from assets on the balance sheet. It also demonstrates how to organize revenue and expenses to calculate net income on the income statement.
The document provides an overview of basic financial statements:
1) It introduces the three primary financial statements - the balance sheet, income statement, and statement of cash flows. The balance sheet provides a snapshot of assets, liabilities, and equity on a given date. The income statement shows revenues and expenses over a period of time. The statement of cash flows details sources and uses of cash.
2) It provides an example balance sheet for a sample company, Vagabond Travel Agency, as of December 31, 2018 to illustrate the components of a basic balance sheet.
3) It walks through a series of transactions for an example company, Overnight Auto Service, to demonstrate how transactions impact the accounting equation
The document provides details on recording business transactions for Pioneer Advertising Agency using journal entries. It lists 11 transactions in chronological order from January 10 to October 31, including C.R. Byrd investing cash to start the business, purchasing office equipment, receiving cash from a client in advance, paying rent and insurance, purchasing supplies on credit, hiring employees, Byrd withdrawing cash, paying employee salaries, and receiving cash from a client for services. For each transaction, the general journal is updated with debits and credits to the appropriate accounts.
1) The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, transactions, debits and credits, and the key financial statements.
2) Sample transactions are presented for a new business that purchases equipment, supplies, earns revenue, and pays expenses. Journal entries are provided to record each transaction.
3) Accounting is defined as a system that identifies, records, and communicates financial information about an entity. The accounting process includes recording economic events, classifying data, preparing financial statements, and analyzing and communicating results.
1) The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, transactions, debits and credits, and the key financial statements.
2) Sample transactions are presented for a new business that purchases equipment, supplies, earns revenue, and pays expenses. Journal entries are provided to record each transaction.
3) Accounting is defined as a system for identifying, recording, and communicating financial information about an economic entity. It involves recording economic events, classifying and summarizing data, and preparing financial reports.
1. The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, assets, liabilities, and owner's equity as building blocks of accounting.
2. Sample transactions are presented for a new business called Softbyte to demonstrate how accounting records economic events and their impact on the basic accounting equation.
3. The accounting process includes identifying business transactions, recording the financial effects of the transactions, and preparing accounting reports to analyze the entity's performance and financial position.
1) The document provides an overview of accounting principles and the accounting process. It discusses the basic accounting equation, transactions, debits and credits, and the key financial statements.
2) Sample transactions are presented for a new business that purchases equipment, supplies, earns revenue, and pays expenses. Journal entries are provided to record each transaction.
3) Accounting is defined as a system that identifies, records, and communicates financial information about an entity. The accounting process includes recording economic events, classifying data, preparing financial statements, and analyzing and communicating results.
This document discusses what banks look for when determining whether a small-to-medium enterprise (SME) is "bankable" for loans. It outlines the 5 C's of credit that banks evaluate: Character, Capacity, Capital, Collateral, and Conditions. SMEs need to demonstrate their willingness, capacity, risk management practices, and financial stability to satisfy these criteria. The document provides tips for SME owners to prepare documentation like financial statements and business plans for initial bank meetings to discuss cash flow-based or scorecard-based lending options.
This document provides information about a financial accounting course at Eelo University in Borama, Somaliland. It introduces the lecturer, Professor Abdi Ali Hassan, who holds a B.Sc. and MBA in Strategic Management from the University of Nairobi. It also provides Professor Abdi's contact information.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
How to Setup Warehouse & Location in Odoo 17 InventoryCeline George
In this slide, we'll explore how to set up warehouses and locations in Odoo 17 Inventory. This will help us manage our stock effectively, track inventory levels, and streamline warehouse operations.
Gender and Mental Health - Counselling and Family Therapy Applications and In...PsychoTech Services
A proprietary approach developed by bringing together the best of learning theories from Psychology, design principles from the world of visualization, and pedagogical methods from over a decade of training experience, that enables you to: Learn better, faster!
How to Make a Field Mandatory in Odoo 17Celine George
In Odoo, making a field required can be done through both Python code and XML views. When you set the required attribute to True in Python code, it makes the field required across all views where it's used. Conversely, when you set the required attribute in XML views, it makes the field required only in the context of that particular view.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Training: ISO/IEC 27001 Information Security Management System - EN | PECB
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Article: https://pecb.com/article
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Temple of Asclepius in Thrace. Excavation resultsKrassimira Luka
The temple and the sanctuary around were dedicated to Asklepios Zmidrenus. This name has been known since 1875 when an inscription dedicated to him was discovered in Rome. The inscription is dated in 227 AD and was left by soldiers originating from the city of Philippopolis (modern Plovdiv).
1. Chapter 2 Power Notes
Analyzing Transactions
Learning Objectives
1. Usefulness of an Account
2. Characteristics of an Account
3. Analyzing and Summarizing Transactions
4. Illustration of Analyzing and Summarizing
5. Trial Balance
6. Discovery and Correction of Errors
7. Financial Analysis and Interpretation
C2
C2 - 1
2. Chapter 2 Power Notes
Analyzing Transactions
Slide # Power Note Topics
3 • Double-Entry Accounting
11 • Analyzing and Recording Transactions
36 • Chart of Accounts, Trial Balance
40 • Journal, Ledger, and Trial Balance
43 • Recording and Posting an Entry
50 • Correcting Errors
57 • Horizontal Analysis
Note: To select a topic, type the slide # and press Enter.
C2 - 2
3. Double-Entry Accounting
― Double-entry accounting is based on a
simple concept: each party in a business
transaction will receive something and give
something in return. In bookkeeping terms,
what is received is a debit and what is given
is a credit. The T account is a representation
of a scale or balance.‖
Scale or Balance T account
Left Side Right Side
Receive Give
Luca Pacioli DEBIT CREDIT
Developer of
Double-Entry Receive Give
Accounting DEBIT CREDIT
C2 - 3
4. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
C2 - 4
5. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
Assets
C2 - 5
6. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
Assets
Expenses
C2 - 6
7. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
Liabilities
Assets
Expenses
C2 - 7
8. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
Liabilities
Assets
Owner’s Equity
Expenses
C2 - 8
9. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
Liabilities
Assets
Owner’s Equity
Revenues
Expenses
C2 - 9
10. Expanded Accounting Equation
― The basic accounting equation can be
expanded to include all five financial categories
indicating what has been received and given.‖
DEBITS CREDITS
received = given
Liabilities
Assets
Owner’s Equity
Net
Income
Revenues
Expenses
C2 - 10
11. NetSolutions
A Sole Proprietorship
― On November 1, 2002, I started a sole
proprietorship called NetSolutions. I plan to
use my knowledge of microcomputers and
offer computer consulting services for a fee.
The following double-entry transactions show
how amounts received (debits) always equal
amounts given (credits).‖
Chris Clark,
Owner
C2 - 11
12. Business Transactions
Entry A. Chris Clark (investor)
Chris Clark
deposits $25,000
in a bank account
for NetSolutions.
receive NetSolutions give
give
Debit (investee) Credit
Credit
General Journal
Date Description Debit Credit
11/1
C2 - 12
13. Business Transactions
Entry A. Chris Clark (investor)
Chris Clark
deposits $25,000 Cash
in a bank account
for NetSolutions.
receive NetSolutions give
give
Debit (investee) Credit
Credit
General Journal
Date Description Debit Credit
11/1 Cash 25,000
C2 - 13
14. Business Transactions
Entry A. Chris Clark (investor)
Chris Clark
deposits $25,000 Cash A promise
in a bank account to the owner
for NetSolutions.
receive NetSolutions give
give
Debit (investee) Credit
Credit
General Journal
Date Description Debit Credit
11/1 Cash 25,000
Chris Clark, Capital 25,000
C2 - 14
15. Business Transactions
Entry B. Land Owner (seller)
NetSolutions buys
land for $20,000.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/5
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16. Business Transactions
Entry B. Land Owner (seller)
NetSolutions buys
land for $20,000. Land
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/5 Land 20,000
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17. Business Transactions
Entry B. Land Owner (seller)
NetSolutions buys
land for $20,000. Land Cash
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/5 Land 20,000
Cash 20,000
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18. Business Transactions
Entry C. Supplier (seller)
NetSolutions buys
supplies for
$1,350, agreeing to
pay in the near
future.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/10
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19. Business Transactions
Entry C. Supplier (seller)
NetSolutions buys
supplies for Supplies
$1,350, agreeing to
pay in the near
future.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/10 Supplies 1,350
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20. Business Transactions
Entry C. Supplier (seller)
NetSolutions buys
supplies for Supplies A promise
$1,350, agreeing to to pay later
pay in the near
future.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/10 Supplies 1,350
Accounts Payable 1,350
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21. Business Transactions
Entry D. Customer (buyer)
NetSolutions
earns fees of
$7,500, receiving
cash.
receive NetSolutions give
give
Debit (seller) Credit
Credit
General Journal
Date Description Debit Credit
11/18
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22. Business Transactions
Entry D. Customer (buyer)
NetSolutions
earns fees of Cash
$7,500, receiving
cash.
receive NetSolutions give
give
Debit (seller) Credit
Credit
General Journal
Date Description Debit Credit
11/18 Cash 7,500
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23. Business Transactions
Entry D. Customer (buyer)
NetSolutions
earns fees of Cash Services
$7,500, receiving
cash.
receive NetSolutions give
give
Debit (seller) Credit
Credit
General Journal
Date Description Debit Credit
11/18 Cash 7,500
Fees Earned 7,500
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24. Business Transactions
Entry E. Various suppliers
NetSolutions paid:
wages, $2,125; rent,
$800; utilities, $450;
and miscellaneous,
$275.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
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25. Business Transactions
Entry E. Various suppliers
NetSolutions paid:
Services,
wages, $2,125; rent,
benefits
$800; utilities, $450;
and miscellaneous,
$275.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/18 Wages Expense 2,125
Rent Expense 800
Utilities Expense 450
Misc. Expense 275
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26. Business Transactions
Entry E. Various suppliers
NetSolutions paid:
Services,
wages, $2,125; rent, Cash
benefits
$800; utilities, $450;
and miscellaneous,
$275.
receive NetSolutions give
give
Debit (buyer) Credit
Credit
General Journal
Date Description Debit Credit
11/18 Wages Expense 2,125
Rent Expense 800
Utilities Expense 450
Misc. Expense 275
Cash 3,650
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27. Business Transactions
Entry F. Supplier (payee)
NetSolutions pays
$950 to creditors
on account.
receive NetSolutions give
give
Debit (payor) Credit
Credit
General Journal
Date Description Debit Credit
11/30
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28. Business Transactions
Entry F. Supplier (payee)
NetSolutions pays
Reduction in
$950 to creditors
obligation
on account.
receive NetSolutions give
give
Debit (payor) Credit
Credit
General Journal
Date Description Debit Credit
11/30 Accounts Payable 950
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29. Business Transactions
Entry F. Supplier (payee)
NetSolutions pays
Reduction in
$950 to creditors Cash
obligation
on account.
receive NetSolutions give
give
Debit (payor) Credit
Credit
General Journal
Date Description Debit Credit
11/30 Accounts Payable 950
Cash 950
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30. Business Transactions
Entry G. Internal Transaction
(no external entity)
At the end of the
month, the cost of
supplies on hand
is $550.
receive NetSolutions give
give
Debit (user) Credit
Credit
General Journal
Date Description Debit Credit
11/30
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31. Business Transactions
Entry G. Internal Transaction
(no external entity)
At the end of the
month, the cost of Use of
supplies on hand supplies
is $550.
receive NetSolutions give
give
Debit (user) Credit
Credit
General Journal
Date Description Debit Credit
11/30 Supplies Expense 800
Balance of Supplies account $1,350 less $550 on hand = $800 used
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32. Business Transactions
Entry G. Internal Transaction
(no external entity)
At the end of the
month, the cost of Use of
supplies Supplies
supplies on hand
is $550.
receive NetSolutions give
give
Debit (user) Credit
Credit
General Journal
Date Description Debit Credit
11/30 Supplies Expense 800
Supplies 800
Balance of Supplies account $1,350 less $550 on hand = $800 used
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33. Business Transactions
Entry H. Chris Clark (payee)
Chris Clark
withdraws $2,000
in cash.
receive NetSolutions give
give
Debit (payor) Credit
Credit
General Journal
Date Description Debit Credit
11/30
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34. Business Transactions
Entry H. Chris Clark (payee)
Chris Clark
Reduction in
withdraws $2,000
obligation
in cash.
receive NetSolutions give
give
Debit (payor) Credit
Credit
General Journal
Date Description Debit Credit
11/30 Chris Clark, Drawing 2,000
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35. Business Transactions
Entry H. Chris Clark (payee)
Chris Clark
Reduction in
withdraws $2,000 Cash
obligation
in cash.
receive NetSolutions give
give
Debit (payor) Credit
Credit
General Journal
Date Description Debit Credit
11/30 Chris Clark, Drawing 2,000
Cash 2,000
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40. Journal, Ledger, Trial Balance
1. Transactions are analyzed
and recorded in journal.
Documents
Journal
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41. Journal, Ledger, Trial Balance
1. Transactions are analyzed
and recorded in journal.
Documents
Journal
2. Transactions are posted
from journal to ledger.
Journal Ledger
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42. Journal, Ledger, Trial Balance
1. Transactions are analyzed
and recorded in journal.
Documents
Journal
2. Transactions are posted
from journal to ledger.
Journal Ledger
3. Trial balance is prepared.
Trial Balance
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43. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400
Cash 2,400
1. Analyze and record the transaction as shown.
2. Post the debit side of the transaction.
3. Post the credit side of the transaction.
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44. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400
Cash 2,400
1 General Ledger
Account: Prepaid Insurance Account No. 15
Post. Balance
Date Item Ref. Debit Credit Debit Credit
12/1
1 Enter the transaction date in the ledger account.
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45. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400
Cash 2,400
General Ledger 2
Account: Prepaid Insurance Account No. 15
Post. Balance
Date Item Ref. Debit Credit Debit Credit
12/1 1 2,400
2 Enter the debit amount in the ledger debit column.
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46. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400
Cash 2,400
General Ledger
Account: Prepaid Insurance Account No. 15
Post. Balance
Date Item Ref. Debit Credit Debit Credit
12/1 1 2,400 2,400
3
3 Update the ledger account balance.
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47. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 2,400
Cash 2,400
General Ledger 4
Account: Prepaid Insurance Account No. 15
Post. Balance
Date Item Ref. Debit Credit Debit Credit
12/1 1
4 Enter the journal page in the ledger account.
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48. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 15 2,400
Cash 2,400
5
General Ledger
Account: Prepaid Insurance Account No. 15
Post. Balance
Date Item Ref. Debit Credit Debit Credit
12/1 1 2,400 2,400
5 Enter the ledger account number in the journal.
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49. Recording and Posting an Entry
General Journal Page 1
Post.
Date Description Ref. Debit Credit
12/1 Prepaid Insurance 15 2,400
Cash 11 2,400
1 4 5 2
General Ledger
Account: Cash Account No. 11
Post. Balance
Date Item Ref. Debit Credit Debit Credit
11/30 Balance 5,900
12/1 1 2,400 3,500
3
All five parts of the credit posting are shown.
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50. Correcting Errors
Three Types of Errors
Journal Entry Ledger Posting Correction Procedure
1. incorrect not posted correct Journal
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51. Correcting Errors
Three Types of Errors
Journal Entry Ledger Posting Correction Procedure
1. incorrect not posted correct Journal
2. correct incorrectly posted correct Ledger
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52. Correcting Errors
Three Types of Errors
Journal Entry Ledger Posting Correction Procedure
1. incorrect not posted correct Journal
2. correct incorrectly posted correct Ledger
3. incorrect already posted record and post
a correcting entry
Error 3 requires a correcting journal entry.
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53. Correcting Errors – An Example
On May 5 a purchase of office equipment on account
was incorrectly journalized and posted as shown.
General Journal – As recorded and posted
Date Description Debit Credit
5/5 Supplies 12,500
Accounts Payable 12,500
What part of this entry is incorrect?
What correcting entry would you make?
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54. Correcting Errors – An Example
On May 5 a purchase of office equipment on account
was incorrectly journalized and posted as shown.
General Journal – As recorded and posted
Date Description Debit Credit
5/5 Supplies 12,500
Accounts Payable 12,500
General Journal – A correcting entry
Date Description Debit Credit
5/5
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55. Correcting Errors – An Example
On May 5 a purchase of office equipment on account
was incorrectly journalized and posted as shown.
General Journal – As recorded and posted
Date Description Debit Credit
5/5 Supplies 12,500
Accounts Payable 12,500
General Journal – A correcting entry
Date Description Debit Credit
5/5 Office Equipment 12,500
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56. Correcting Errors – An Example
On May 5 a purchase of office equipment on account
was incorrectly journalized and posted as shown.
General Journal – As recorded and posted
Date Description Debit Credit
5/5 Supplies 12,500
Accounts Payable 12,500
General Journal – A correcting entry
Date Description Debit Credit
5/5 Office Equipment 12,500
Supplies 12,500
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57. Financial Analysis and Interpretation
Objective: Use horizontal analysis to compare financial
statements from different periods.
Comparative Balance Sheet
December 31, 2003 and 2002
Increase (Decrease)
2003 2002 Amount Percent
Assets
Current assets $ 550,000 $ 533,000
Long-term investments 95,000 177,500
Plant assets (net) 444,500 470,000
Intangible assets 50,000 50,000
$1,139,500 $1,230,500
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58. Financial Analysis and Interpretation
Objective: Use horizontal analysis to compare financial
statements from different periods.
Comparative Balance Sheet
December 31, 2003 and 2002
Increase (Decrease)
2003 2002 Amount Percent
Assets
Current assets $ 550,000 $ 533,000
Horizontal Analysis: $ 17,000 3.2%
Long-term investments 95,000 177,500 (82,500) (46.5%)
Plant assets (net) Current year (2003) $550,000
444,500 470,000 (25,500) (5.4%)
= 103.2%
Intangible assets Base 50,000
year (2002) 50,000
$533,000 —
$1,139,500 $1,230,500 $ (91,000) (7.4%)
Increase amount $17,000
= 3.2%
Base year (2002) $533,000
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59. Financial Analysis and Interpretation
Objective: Use horizontal analysis to compare financial
statements from different periods.
Comparative Income Statement
December 31, 2003 and 2002
Increase (Decrease)
2003 2002 Amount Percent
Sales $1,530,500 $1,234,000
Sales returns 32,500 34,000
Net sales $1,498,000 $1,200,000
Cost of goods sold 1,043,000 820,000
Gross profit $ 455,000 $ 380,000
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60. Financial Analysis and Interpretation
Objective: Use horizontal analysis to compare financial
statements from different periods.
Comparative Income Statement
December 31, 2003 and 2002
Increase (Decrease)
2003 2002 Amount Percent
Sales $1,530,500 $1,234,000 $296,500 24.0%
Sales returns 32,500 34,000 (1,500) (4.4%)
Net sales $1,498,000 $1,200,000 $298,000) 24.8%
Horizontal Analysis:
Cost of goods sold 1,043,000 820,000 223,000 27.2%
Gross profit $ 455,000 $ 380,000 $ 75,000 19.7%
Current year (2003) $1,498,000
= 124.8%
Base year (2002) $1,200,000
Increase amount $298,000
= 24.8%
Base year (2002) $1,200,000
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61. Chapter 2 Power Notes
Analyzing Transactions
This is the last slide in Chapter 2.
Note: To see the topic slide, type 2 and press Enter.
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