Facilitator: Robbie Dircks, Associate Director & CFO, University of North Carolina Press
Panelists: Mike Bieker, Director, University of Arkansas Press; Dan Wackrow, Chief Financial and Operating Officer, Harvard University Press
The document provides an overview of a class on financial projections and entrepreneurial studies. It discusses understanding personal financial obligations, preparing basic financial sheets like income statements and balance sheets, accounting terminology, business record keeping requirements, and calculating basic financial ratios. Students are expected to learn how to prepare a personal budget, understand minimum living expenses, grasp basic accounting concepts, and know what financial records are required to be kept and how to maintain them properly.
The document discusses the accounting process and provides details about accounting concepts, principles, branches, books of accounts, accounting systems and rules of debit and credit. It defines accounting and discusses the accounting equation. It explains the different types of accounts, accounting process which involves recording transactions in journal, posting to ledger, preparing trial balance and final accounts. It provides examples of journal entries and trial balance.
Accounting is a system used to record, analyze, and communicate financial information. It involves recording transactions, classifying them, and communicating the results. The main objectives of accounting are to keep systematic records, ascertain profitability, determine financial position, assist in decision making, and fulfill legal compliance. Some key functions of accounting include keeping records, communicating results, meeting legal requirements, and planning and controlling business activities.
Accounting basics for non-financial individuals provides an overview of key accounting concepts. It explains that accounting is the practice of recording financial activity and measuring sources and uses of resources. Accounts are "buckets" used to classify transactions, with common accounts including assets, liabilities, equity, revenue, and expenses. Key financial reports like the balance sheet and income statement are also summarized as showing the current financial condition and financial activity over a period.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
Basic Financial Management for Small BusinessesBizcentralUSA
In this 1 hour webinar hosted by BizCentral USA, we discuss the basic financial management, bookkeeping and accounting methods to keep your small business on the right track! For more information, please visit: http://bizcentralusa.com/accounting_cpa_bookkeeping.php
This document provides an overview of key concepts in financial accounting, including:
- Definitions of accounting, bookkeeping, and accountancy. Accounting involves recording, classifying, summarizing, and communicating financial information, while bookkeeping is the process of recording transactions.
- The objectives of accounting, which include maintaining business records, ascertaining profit/loss, determining financial position, facilitating management control, and providing information to users.
- The advantages of accounting, such as providing financial information about a business and assisting management decision making.
- The limitations of accounting, as it does not provide an exact measure and ignores qualitative factors.
Introduction to financial accounting ( Simple understanding of financial acco...Dr. Sanjay Sawant Dessai
Introduction to financial accounting. This presentation will help students to understand financial accounting in simple way , it covers basics of financial accounting process
The document provides an overview of a class on financial projections and entrepreneurial studies. It discusses understanding personal financial obligations, preparing basic financial sheets like income statements and balance sheets, accounting terminology, business record keeping requirements, and calculating basic financial ratios. Students are expected to learn how to prepare a personal budget, understand minimum living expenses, grasp basic accounting concepts, and know what financial records are required to be kept and how to maintain them properly.
The document discusses the accounting process and provides details about accounting concepts, principles, branches, books of accounts, accounting systems and rules of debit and credit. It defines accounting and discusses the accounting equation. It explains the different types of accounts, accounting process which involves recording transactions in journal, posting to ledger, preparing trial balance and final accounts. It provides examples of journal entries and trial balance.
Accounting is a system used to record, analyze, and communicate financial information. It involves recording transactions, classifying them, and communicating the results. The main objectives of accounting are to keep systematic records, ascertain profitability, determine financial position, assist in decision making, and fulfill legal compliance. Some key functions of accounting include keeping records, communicating results, meeting legal requirements, and planning and controlling business activities.
Accounting basics for non-financial individuals provides an overview of key accounting concepts. It explains that accounting is the practice of recording financial activity and measuring sources and uses of resources. Accounts are "buckets" used to classify transactions, with common accounts including assets, liabilities, equity, revenue, and expenses. Key financial reports like the balance sheet and income statement are also summarized as showing the current financial condition and financial activity over a period.
This presentation talks about Meaning, of accounting, distinction between book keeping and accounting, Branches of accounting, Objectives of accounting, Uses and users of accounting information, Advantages of Accounting, Is accounting a science or an art, double entry system of financial accounting, limitations of financial accounting, important terms, journal entry, accounting concepts and conventions
Basic Financial Management for Small BusinessesBizcentralUSA
In this 1 hour webinar hosted by BizCentral USA, we discuss the basic financial management, bookkeeping and accounting methods to keep your small business on the right track! For more information, please visit: http://bizcentralusa.com/accounting_cpa_bookkeeping.php
This document provides an overview of key concepts in financial accounting, including:
- Definitions of accounting, bookkeeping, and accountancy. Accounting involves recording, classifying, summarizing, and communicating financial information, while bookkeeping is the process of recording transactions.
- The objectives of accounting, which include maintaining business records, ascertaining profit/loss, determining financial position, facilitating management control, and providing information to users.
- The advantages of accounting, such as providing financial information about a business and assisting management decision making.
- The limitations of accounting, as it does not provide an exact measure and ignores qualitative factors.
Introduction to financial accounting ( Simple understanding of financial acco...Dr. Sanjay Sawant Dessai
Introduction to financial accounting. This presentation will help students to understand financial accounting in simple way , it covers basics of financial accounting process
Finance for non finance for employee, business man and corporatete Bibek Prajapati
This document provides an overview of key concepts in accounting and finance. It begins with definitions of financial planning and outlining the typical steps in the financial planning process. It then discusses the three principles of corporate finance, differences between management and financial accounting, the accounting cycle process, and users of accounting information. The document also defines common accounting terms and concepts such as transactions, assets, liabilities, income, expenses, and financial statements. It provides classifications of accounts and expenditures. In summary, the document covers fundamental accounting and finance concepts.
The accounting cycle is a series of steps that allows a business to track financial transactions and prepare financial statements. It begins with recording transactions from source documents, then journalizing and posting them to ledgers. A trial balance is prepared to check the accounting equation. Adjusting entries are made, then an adjusted trial balance. Finally, financial statements like the income statement and balance sheet are prepared to report on the business's profits and financial position. The accounting cycle is repeated each reporting period to continuously update the financial records.
The document discusses corporate objectives, finance and accounting concepts, and basic accounting principles. It explains that every organization aims to achieve broad objectives over time through vision and mission statements. It also defines key accounting terms like assets, liabilities, revenues, and expenses; and accounting principles including revenue recognition, historical cost, and matching. The document outlines the recording of transactions, rules of debit and credit, and types of original books like journals and cash books.
Cloud based <a>Online Accounting Software</a> for day to day needs of accountants and sme's, allows you to manage payroll, bookkeeping for free.
Learn More :- https://www.capium.com
The accounting cycle is a series of 9 steps that are repeated each reporting period to record business transactions and prepare financial statements. The steps are: 1) analyze transactions, 2) journalize transactions, 3) post to ledger accounts, 4) prepare an unadjusted trial balance, 5) make adjustments, 6) prepare an adjusted trial balance, 7) make financial statements, 8) close temporary accounts, and 9) prepare a post-closing trial balance to verify the accounting records. The cycle ensures transactions are properly recorded and financial statements are prepared accurately.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
The document summarizes a presentation on financial statement analysis for non-finance managers. It covers the objectives of the presentation which are to expose the basic principles of accounting, educate on the relevance of financial statements, provide understanding of financial statement elements and indicators, and interpret financial statements. It then discusses accounting concepts and principles like the economic entity, monetary unit, and historical cost assumptions. Specific accounting principles around matching revenues and expenses, revenue recognition, and the going concern assumption are also outlined. Finally, key accounting conventions regarding consistency, prudency, materiality and objectivity are defined.
The accounting process involves collecting documents, posting journal entries, transferring balances to ledger accounts, preparing a trial balance, making adjustments, creating an adjusted trial balance, preparing financial statements, making post-closing entries, and generating a post-closing trial balance. Source documents are collected and analyzed throughout the accounting period. Journal entries are posted using double entry accounting. Ledger accounts track debit and credit balances. An initial trial balance is prepared, then adjustment entries are made and an adjusted trial balance is created to develop financial statements showing the firm's profits, losses, and financial health. Finally, revenue and expense accounts are closed out and balances transferred in post-closing entries.
Financial Management for Small Business with Luis ArguetaPeopleFund
In this session, participants will learn the essentials of financial management and how to apply financial management practices, rules, and tools that are most relevant for small businesses. Participants will also learn how to prepare for common business financing needs.
Finance for non financial personnel - part 4Quek Joo Chay
This document discusses financial reporting and how to interpret reports. It explains that useful reports are purposeful, designed for decision-making, contain good information, and are well presented. It also outlines the basic structure of reports, including position, performance, ratios, and comparisons. Finally, it emphasizes that the ability to read reports is not the same as being able to interpret them, and it introduces various techniques for interpreting reports.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
Basic of Financial Accounting - Easy NotesFaHaD .H. NooR
These notes will provide you understanding basic of financial accounting
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
Companies issue financial statements on a routine schedule. The statements are considered external because they are given to people outside of the company, with the primary recipients being owners/stockholders, as well as certain lenders. If a corporation's stock is publicly traded, however, its financial statements (and other financial reportings) tend to be widely circulated, and information will likely reach secondary recipients such as competitors, customers, employees, labor organizations, and investment analysts.
It's important to point out that the purpose of financial accounting is not to report the value of a company. Rather, its purpose is to provide enough information for others to assess the value of a company for themselves.If financial accounting is going to be useful, a company's reports need to be credible, easy to understand, and comparable to those of other companies. To this end, financial accounting follows a set of common rules known as accounting standards or generally accepted accounting principles (GAAP, pronounced "gap").
Cash is the most liquid asset and consists of currency and demand deposits. Proper controls must be established to prevent improper cash use and provide necessary management information. Receivables are amounts due from customers from goods and services and include trade receivables from normal operations and non-trade receivables from other transactions. Receivables are recorded at net realizable value through use of allowances for uncollectible amounts based on percentages of credit sales or outstanding receivables. Notes receivable are formally documented promises to pay and may require present value accounting.
“Interpreting Financial Statements” by Philip DrakeMegan Calcote
This document provides an overview and introduction to understanding financial statements. It begins with an agenda that outlines topics to be covered including the accounting equation, financial statement relations, ratio analysis, and cash flow analysis. It then discusses key concepts like the accounting equation that balances assets with liabilities and equity. The three main financial statements are introduced as the balance sheet, income statement, and statement of cash flows. Common components of each statement are defined. The rest of the document discusses how financial statements link business decisions and valuation, and provides examples of analyzing elements like return on equity, working capital management, and cash-to-cash cycles.
The document provides a basic primer on understanding financial statements for beginners. It explains the two key financial statements - the balance sheet and income statement. The balance sheet reflects a company's financial makeup and standing at a point in time, showing assets, liabilities, and net worth. The income statement reflects revenues and expenses for the current year to show net profit or loss. Net profit on the income statement flows to net worth on the balance sheet.
This document provides an overview and outline of a finance course for non-finance professionals. The summary includes:
- The course is aimed at professionals without financial backgrounds like doctors, engineers, and managers to teach them basic finance concepts.
- The outline covers why financial education is important, definitions of accounting, the accounting equation, examples of accounting transactions, financial statements, and the three main financial decisions around investments, financing, and dividends.
- Key concepts defined include assets, liabilities, revenues, expenses, accounting, the accounting equation, double-entry accounting, balance sheets, income statements, and the three main types of business entities.
Financial Forecasts and Projections - Paul BeckmanDecosimoCPAs
The document discusses financial forecasting and projections. It begins by outlining how the business environment has changed from steady and predictable to unpredictable and rapidly changing. It then discusses the purpose of forecasts over different time horizons such as long, medium, and short term. The relationship between time and detail in forecasts is examined, with more predictability and less detail for longer term forecasts. Common pitfalls in forecasting like lack of understanding purpose and too much detail are outlined. Best practices discussed include using drivers, scenario analysis, and tying forecasts to key performance indicators. The role of forecasting in creating a more adaptive budgeting process is also examined.
This document provides an overview of personal and professional finance concepts for non-finance individuals. It discusses the importance of learning about savings, investments, financial planning, and other topics for personal growth. Professionally, it outlines key elements of financial statements like the balance sheet, income statement, and cash flow statement. It also defines common accounting terms and financial ratios to analyze statements. The goal is to educate non-finance readers on basic financial literacy.
This document provides an overview of financial analysis and key concepts used in financial statements. It discusses the primary uses of financial analysis to assess business performance, forecast financial requirements, and evaluate capital investment decisions. The key components of financial statements are described including the income statement, balance sheet, and statement of cash flows. Common financial metrics and ratios are outlined for evaluating operational performance, resource management, and profitability from the perspective of management, owners, lenders. Methods for evaluating capital investments such as return on investment, payback period, and discounted cash flow analysis are also summarized.
Accounting for Entrepreneurs.
Presented by: Ms. Rand Marar, GOL Trainer
Socialize your Business, Maadi Public Library, Cairo, Egypt.
Organized by IRC, US-Embassy in Cairo
26 March, 2013
This document provides an introduction to basic accounting concepts. It begins by defining key terms like assets, liabilities, capital, and accounting periods. It then explains important accounting principles and financial statements, including accrual accounting, accounts receivable/payable, and the balance sheet, income statement, and statement of cash flows. The overall purpose is to familiarize readers with fundamental accounting vocabulary and practices.
Finance for non finance for employee, business man and corporatete Bibek Prajapati
This document provides an overview of key concepts in accounting and finance. It begins with definitions of financial planning and outlining the typical steps in the financial planning process. It then discusses the three principles of corporate finance, differences between management and financial accounting, the accounting cycle process, and users of accounting information. The document also defines common accounting terms and concepts such as transactions, assets, liabilities, income, expenses, and financial statements. It provides classifications of accounts and expenditures. In summary, the document covers fundamental accounting and finance concepts.
The accounting cycle is a series of steps that allows a business to track financial transactions and prepare financial statements. It begins with recording transactions from source documents, then journalizing and posting them to ledgers. A trial balance is prepared to check the accounting equation. Adjusting entries are made, then an adjusted trial balance. Finally, financial statements like the income statement and balance sheet are prepared to report on the business's profits and financial position. The accounting cycle is repeated each reporting period to continuously update the financial records.
The document discusses corporate objectives, finance and accounting concepts, and basic accounting principles. It explains that every organization aims to achieve broad objectives over time through vision and mission statements. It also defines key accounting terms like assets, liabilities, revenues, and expenses; and accounting principles including revenue recognition, historical cost, and matching. The document outlines the recording of transactions, rules of debit and credit, and types of original books like journals and cash books.
Cloud based <a>Online Accounting Software</a> for day to day needs of accountants and sme's, allows you to manage payroll, bookkeeping for free.
Learn More :- https://www.capium.com
The accounting cycle is a series of 9 steps that are repeated each reporting period to record business transactions and prepare financial statements. The steps are: 1) analyze transactions, 2) journalize transactions, 3) post to ledger accounts, 4) prepare an unadjusted trial balance, 5) make adjustments, 6) prepare an adjusted trial balance, 7) make financial statements, 8) close temporary accounts, and 9) prepare a post-closing trial balance to verify the accounting records. The cycle ensures transactions are properly recorded and financial statements are prepared accurately.
Accounting is the process of identifying, measuring, recording, classifying, summarizing, analyzing, interpreting and communicating financial information about an entity. It involves recording economic events which affect the financial position and performance of a business. The key functions of accounting include identifying transactions, measuring transactions in monetary terms, recording transactions methodically in books of accounts, classifying transactions into appropriate accounts, summarizing transactions periodically into financial statements, analyzing trends and relationships, interpreting financial statements for decision making and communicating essential information to users.
The document summarizes a presentation on financial statement analysis for non-finance managers. It covers the objectives of the presentation which are to expose the basic principles of accounting, educate on the relevance of financial statements, provide understanding of financial statement elements and indicators, and interpret financial statements. It then discusses accounting concepts and principles like the economic entity, monetary unit, and historical cost assumptions. Specific accounting principles around matching revenues and expenses, revenue recognition, and the going concern assumption are also outlined. Finally, key accounting conventions regarding consistency, prudency, materiality and objectivity are defined.
The accounting process involves collecting documents, posting journal entries, transferring balances to ledger accounts, preparing a trial balance, making adjustments, creating an adjusted trial balance, preparing financial statements, making post-closing entries, and generating a post-closing trial balance. Source documents are collected and analyzed throughout the accounting period. Journal entries are posted using double entry accounting. Ledger accounts track debit and credit balances. An initial trial balance is prepared, then adjustment entries are made and an adjusted trial balance is created to develop financial statements showing the firm's profits, losses, and financial health. Finally, revenue and expense accounts are closed out and balances transferred in post-closing entries.
Financial Management for Small Business with Luis ArguetaPeopleFund
In this session, participants will learn the essentials of financial management and how to apply financial management practices, rules, and tools that are most relevant for small businesses. Participants will also learn how to prepare for common business financing needs.
Finance for non financial personnel - part 4Quek Joo Chay
This document discusses financial reporting and how to interpret reports. It explains that useful reports are purposeful, designed for decision-making, contain good information, and are well presented. It also outlines the basic structure of reports, including position, performance, ratios, and comparisons. Finally, it emphasizes that the ability to read reports is not the same as being able to interpret them, and it introduces various techniques for interpreting reports.
This document provides a brief introduction to accounting. It defines accounting as recording, classifying, and summarizing financial transactions and events in terms of money. Accounting is necessary for businesses to track their finances and is useful for various stakeholders like owners, investors, creditors, employees and the government. The document outlines the accounting process, including books of original entry, ledger, trial balance, financial statements, and the accounting cycle. It describes accounting as both an art and a science, and discusses the objectives and functions of accounting for businesses.
Basic of Financial Accounting - Easy NotesFaHaD .H. NooR
These notes will provide you understanding basic of financial accounting
Financial accounting is a specialized branch of accounting that keeps track of a company's financial transactions. Using standardized guidelines, the transactions are recorded, summarized, and presented in a financial report or financial statement such as an income statement or a balance sheet.
Companies issue financial statements on a routine schedule. The statements are considered external because they are given to people outside of the company, with the primary recipients being owners/stockholders, as well as certain lenders. If a corporation's stock is publicly traded, however, its financial statements (and other financial reportings) tend to be widely circulated, and information will likely reach secondary recipients such as competitors, customers, employees, labor organizations, and investment analysts.
It's important to point out that the purpose of financial accounting is not to report the value of a company. Rather, its purpose is to provide enough information for others to assess the value of a company for themselves.If financial accounting is going to be useful, a company's reports need to be credible, easy to understand, and comparable to those of other companies. To this end, financial accounting follows a set of common rules known as accounting standards or generally accepted accounting principles (GAAP, pronounced "gap").
Cash is the most liquid asset and consists of currency and demand deposits. Proper controls must be established to prevent improper cash use and provide necessary management information. Receivables are amounts due from customers from goods and services and include trade receivables from normal operations and non-trade receivables from other transactions. Receivables are recorded at net realizable value through use of allowances for uncollectible amounts based on percentages of credit sales or outstanding receivables. Notes receivable are formally documented promises to pay and may require present value accounting.
“Interpreting Financial Statements” by Philip DrakeMegan Calcote
This document provides an overview and introduction to understanding financial statements. It begins with an agenda that outlines topics to be covered including the accounting equation, financial statement relations, ratio analysis, and cash flow analysis. It then discusses key concepts like the accounting equation that balances assets with liabilities and equity. The three main financial statements are introduced as the balance sheet, income statement, and statement of cash flows. Common components of each statement are defined. The rest of the document discusses how financial statements link business decisions and valuation, and provides examples of analyzing elements like return on equity, working capital management, and cash-to-cash cycles.
The document provides a basic primer on understanding financial statements for beginners. It explains the two key financial statements - the balance sheet and income statement. The balance sheet reflects a company's financial makeup and standing at a point in time, showing assets, liabilities, and net worth. The income statement reflects revenues and expenses for the current year to show net profit or loss. Net profit on the income statement flows to net worth on the balance sheet.
This document provides an overview and outline of a finance course for non-finance professionals. The summary includes:
- The course is aimed at professionals without financial backgrounds like doctors, engineers, and managers to teach them basic finance concepts.
- The outline covers why financial education is important, definitions of accounting, the accounting equation, examples of accounting transactions, financial statements, and the three main financial decisions around investments, financing, and dividends.
- Key concepts defined include assets, liabilities, revenues, expenses, accounting, the accounting equation, double-entry accounting, balance sheets, income statements, and the three main types of business entities.
Financial Forecasts and Projections - Paul BeckmanDecosimoCPAs
The document discusses financial forecasting and projections. It begins by outlining how the business environment has changed from steady and predictable to unpredictable and rapidly changing. It then discusses the purpose of forecasts over different time horizons such as long, medium, and short term. The relationship between time and detail in forecasts is examined, with more predictability and less detail for longer term forecasts. Common pitfalls in forecasting like lack of understanding purpose and too much detail are outlined. Best practices discussed include using drivers, scenario analysis, and tying forecasts to key performance indicators. The role of forecasting in creating a more adaptive budgeting process is also examined.
This document provides an overview of personal and professional finance concepts for non-finance individuals. It discusses the importance of learning about savings, investments, financial planning, and other topics for personal growth. Professionally, it outlines key elements of financial statements like the balance sheet, income statement, and cash flow statement. It also defines common accounting terms and financial ratios to analyze statements. The goal is to educate non-finance readers on basic financial literacy.
This document provides an overview of financial analysis and key concepts used in financial statements. It discusses the primary uses of financial analysis to assess business performance, forecast financial requirements, and evaluate capital investment decisions. The key components of financial statements are described including the income statement, balance sheet, and statement of cash flows. Common financial metrics and ratios are outlined for evaluating operational performance, resource management, and profitability from the perspective of management, owners, lenders. Methods for evaluating capital investments such as return on investment, payback period, and discounted cash flow analysis are also summarized.
Accounting for Entrepreneurs.
Presented by: Ms. Rand Marar, GOL Trainer
Socialize your Business, Maadi Public Library, Cairo, Egypt.
Organized by IRC, US-Embassy in Cairo
26 March, 2013
This document provides an introduction to basic accounting concepts. It begins by defining key terms like assets, liabilities, capital, and accounting periods. It then explains important accounting principles and financial statements, including accrual accounting, accounts receivable/payable, and the balance sheet, income statement, and statement of cash flows. The overall purpose is to familiarize readers with fundamental accounting vocabulary and practices.
Finance for Managers
(Managerial Accounting)
Role of Financial Information
• Financial information pervades our economy
– It is the primary means of communication between profit seeking
organizations and their stakeholders
– For this reason organizations use financial measures internally as a broad indicator of performance
• This financial information provides a signal that something is wrong, but not what is wrong
• Financial information summarizes underlying activities
– But to explain financial results, managers need to dig deeper
– Detailed information provides additional insight into what is happening to
profits
This document provides an overview of basic accounting and financial management concepts. It defines accounting as identifying, classifying, recording, and summarizing business transactions, and interpreting and communicating the results. It distinguishes accounting from bookkeeping, and explains the differences between management accounting for internal users and financial accounting for external users. Key financial statements like the income statement, balance sheet, and cash flow statement are also summarized.
The document provides an introduction to accounting concepts and principles. It discusses how accounting records and measures financial transactions and provides information to various stakeholders. It defines accounting and outlines its objectives and users. It also describes key accounting terms, concepts and conventions like double-entry system, accounting equation, debits and credits rules. Finally, it discusses various books of accounts like journal, ledger, trial balance and accounting cycle.
This document defines accounting and outlines its primary functions and users. It discusses how accounting involves recording business transactions, summarizing results into reports, and providing assurance. Accounting aids decision making by showing how money is spent and the implications of different plans. Financial statements like the income statement and balance sheet are key outputs. The accounting cycle and double-entry bookkeeping are also summarized.
This document provides an overview of basic financial accounting concepts. It defines key accounting terms like accounts, accounting, the accounting cycle and basis. It describes the different types of accounts, rules of double entry system and branches of accounting. It also explains the accounting process including journal, ledger, trial balance and errors. The accounting concepts, conventions and terminology are introduced along with the different books of accounts used.
The document provides an overview of basic financial accounting concepts including the definition of accounts, accounting principles and processes, types of accounts and ledgers, the accounting cycle, and key accounting terminology. It also discusses the different bases, systems, and branches of accounting as well as the advantages, limitations, and users of accounting information.
This document provides an overview of key financial statements and accounting concepts. It discusses financial statements including the balance sheet, income statement, and statement of cash flows. It explains how these statements are prepared and what key components they include such as assets, liabilities, revenues, expenses, net income, and cash flows. It also covers accounting principles, the accounting cycle, and tools for financial analysis like breakeven analysis.
Understanding financial-statements-revised-2012-10-7-12Tanvir Ahmed
The document discusses understanding financial statements for small businesses. It defines financial statements as summarized results of business transactions over a period of time, showing income, expenses, cash balances and debt levels. It then explains how to read and analyze a company's income statement and balance sheet, including reviewing revenue and expense trends, profitability, liquidity, debt and inventory levels. The document stresses the importance of comparing financial statement numbers to budgets, competitors and prior periods for optimal management insights.
Vacation rental management budgeting and financial management 401Amy Hinote
Budgeting and managing finances for vacation rental managers: An in-depth four hour boot camp incorporating more hands-on knowledge of how to manage the financial landscape and use budgeting as a foundational tool to grow the business and meet future goals.
Here are the answers to the quiz questions:
1. Balance Sheet
2. Income Statement
3. The accounting equation - Assets = Liabilities + Owner's Equity
4. Revenue and Expense accounts
5. Balance Sheet and Statement of Cash Flows
6. Revenue, Expenses, Net Income
7. Balance Sheet
8. Stockholder's Equity or Shareholder's Equity
Real estate is something that you can physically touch and feel – it's a real good and, therefore, for many financiar ,feels more real. Maybe this partially accounts for the high return on the venture, as from 1978-2004, real estate has had an average return of 8.6%. For many time this investment has generated consistent wealth and long term respect for millions of people.
The document defines accounting as recording, classifying, and summarizing financial transactions and events to prepare financial statements. It discusses the basic accounting concepts like the accounting equation, assets, liabilities, equity, revenues and expenses. It also explains the key steps in accounting cycle which includes recording transactions, posting to ledger accounts, preparing an unadjusted trial balance, making adjusting entries, preparing an adjusted trial balance and financial statements, and closing temporary accounts. The accounting cycle aims to generate useful financial information for decision making in the form of income statement, balance sheet, and other financial reports.
This document provides an overview of fundamentals of accounting. It defines accounting as recording, classifying, summarizing, analyzing, interpreting and communicating financial transactions and events in monetary terms. It discusses the key accounting concepts like systems of accounting, basis of accounting, classification of accounts, accounting equation, books of accounts, financial statements and their uses. The document also provides examples of common business transactions and explains the accounting process and principles involved in recording them.
Accounting involves recording financial transactions and events in terms of money. It provides tools to track assets, liabilities, profits and cash flows through financial statements. Accounting serves various stakeholders and specialized fields. Private accounting works within a business, while public accounting has multiple clients. Accounting records transactions using debits and credits in accordance with standards to communicate financial information.
This document provides an overview of accounting concepts including:
- Owner-managers run owner-managed businesses while creditors lend money and investors buy ownership in the form of stock.
- Financial accounting collects and processes financial information to produce reports for internal and external decision-makers.
- The main financial statements are the income statement, balance sheet, statement of retained earnings, and statement of cash flows.
- The income statement reports revenues and expenses to determine net income/loss over an accounting period using accrual accounting.
- The balance sheet lists assets, liabilities, and equity on a given date based on the accounting equation Assets = Liabilities + Equity.
The document provides an overview of the accounting process. It defines accounting and discusses its key principles and concepts. It describes the different branches and types of accounting. It then explains the accounting process which involves identifying transactions, preparing documents, recording transactions in a journal, posting to ledgers, preparing trial balances and final accounts such as profit and loss statements and balance sheets. It also discusses the different books of accounts used such as journals, ledgers and trial balances. Finally, it covers accounting systems and basics such as debits and credits, types of accounts and how to prepare and balance accounts.
The document summarizes the accounting cycle and key concepts in accounting. It discusses the accounting equation, chart of accounts, rules of debit and credit, and the steps in the accounting cycle such as journalizing, posting, and preparing financial statements. Specifically, it defines the accounting cycle as the sequence of procedures in a fiscal period, identifies the basic phases including journalizing, posting, preparing adjustments and financial statements, and explains accounts, ledgers, and how transactions are recorded through debits and credits.
Similar to AAUP 2017: "Finances for Everyone" (20)
The 85 projects presented in this online gallery offer a small sample of university presses' innovative work, in celebration of the 10th annual University Press Week. Take a look, Read UP, and Keep UP!
The 2020 University Press Week Gallery features publications and projects that elevate authors, subjects, and whole disciplines, bringing new perspectives, ideas, and voices to readers around the globe.
This document provides summaries of and excerpts from several books being promoted by university presses for University Press Week 2019. The books cover a wide range of topics including portraits of military veterans, religious values in America, works by Toni Morrison, responses to the 2016 US election, climate change effects in the Arctic, and Europe's images of immigrants and refugees.
View the selected entries for the 2018 Association of University Presses Book, Jacket, & Journal Show—a celebration of excellence in publication design.
The panelists discussed their experiences redesigning university press website. They emphasized the importance of thorough planning, including analyzing traffic, defining goals and functionality, and user testing. Key steps included determining requirements, selecting a content management system, customizing designs, addressing challenges like mobile accessibility, and performing user acceptance testing. Lessons included budgeting for consulting help, using front-end frameworks, and conducting user research to inform the redesign process.
These slides are from the AAUP Monograph Costing Tool Webinar, held Thursday, July 28, 2016. The upcoming tool was developed by Nancy Maron and Kim Schmelzinger and adapted from their methodology in ITHAKA S+R's study, "The Cost of Publishing Monographs."
UPScope is a planning grant from the Mellon Foundation to the AAUP to develop a natural language search platform for books published by AAUP member presses. The platform will create networks between texts through semantic search that can discover connections across disciplines. It aims to improve discovery, visibility, and usage of humanities monographs. Advisory councils and working groups were formed to provide guidance on technical development, business models, and outreach. Next steps include submitting a proof of concept proposal to test ingesting press content, building the discovery tool, and validating usage by scholars.
This document discusses collaboration opportunities between the books and journals programs at Wayne State University Press. It provides examples of how the programs have worked together such as making a journal available as ebooks, sharing exhibit and advertising space at conferences, and incorporating journals in the press's social media and newsletter outreach. The document also proposes additional areas for collaboration like jointly advertising books and journals, including journals in press catalogs and mailings, and sharing internship resources between the programs. The goal is to find areas of overlapping audiences and content between books and journals to better promote each other's work.
These slides are from October Irvins as part of "The Charlotte Initiative on eBook Principles: Making eBooks Work for Libraries and Publishers" at AAUP 2016 in Philadelphia, PA.
Since 1965, the AAUP Book, Jacket, and Journal Show has had a mission to honor great design in scholarly publishing, and—through the traveling exhibit and catalog—instruct viewers in the tenets of good design. See 50 years of Show Catalog covers.
Does It Have to Be Blue? The Purpose and Evolution of Book Covers in University Press Publishing
Chair: Rob Ehle, Art Director, Stanford University Press
Panelists: Tom Eykemans, Senior Designer, University of Washington Press; Julie Thomson, Direct Marketing Manager & Sales Associate, Duke University Press; Christie Henry, Editorial Director, Sciences and Social Sciences, University of Chicago Press
The last two decades has seen a dramatic shift in book cover design treatment at many university presses. At one time, covers were treated as tasteful ornament to serious work, often as restrained as the book’s scholarly prose, rarely eliciting spirited discussion. Cover designs are now treated as serious marketing tools, with multiple designs, multiple rounds, and, occasionally, heated debate. While academic writing is no more accessible today than it was twenty years ago, and print runs are likely to be way less than half what they used to be, are we deluded to care so much about book covers? Or are first impressions even more critical for those very reasons? Two designers, a sales manager, and an acquiring editor discuss the phenomenon, doing their best not to come to blows.
These slides are from Rob Ehle, Art Director at Stanford University Press, as part of "Does It Have to be Blue? The Purpose and Evolution of Book Covers in University Press Publishing" at AAUP 2015 in Denver, CO.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
Executive Directors Chat Leveraging AI for Diversity, Equity, and InclusionTechSoup
Let’s explore the intersection of technology and equity in the final session of our DEI series. Discover how AI tools, like ChatGPT, can be used to support and enhance your nonprofit's DEI initiatives. Participants will gain insights into practical AI applications and get tips for leveraging technology to advance their DEI goals.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
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.
Film vocab for eal 3 students: Australia the movie
AAUP 2017: "Finances for Everyone"
1. Finances for Everyone
AAUP Annual Meeting, Austin, Texas
Tuesday, June 13, 2017
Mike Bieker, Director, University of Arkansas Press
Robbie Dircks, CFO, University of North Carolina Press
Dan Wackrow, CFO, Harvard University Press
4. Definitions of Accounting
Accounting is the systematic process of identifying, recording, measuring,
classifying, verifying, summarizing, interpreting, and communicating financial
information. It reveals profit or loss for a given period, as well as identifies the
value and nature of an organization’s assets, liabilities, and equity. www.businessdictionary.com
The American Accounting Association (AAA) defines accounting as: “the process of
identifying, measuring and communicating economic information in order to
permit informed judgment and decision-making by users of the information.”
5. Definitions of Accounting
Accounting is concerned with transactions and events having financial character.
For example, hiring a new employee is qualitative information with no financial
character. Thus, it is not recorded as an accounting transaction. However, the
payment of salaries, payment for the printing of books, sale of books, etc. are
recorded as accounting transactions because they involve financial value.
6. Basic Accounting Principles
Going Concern Principle – Financial Statements are prepared with the assumption that the business entity will continue to operate indefinitely.
Time Period Principle – The life of a business is subdivided into 12-month periods known as a Fiscal Year, which are the primary reporting period.
However, the need for timely information leads to the preparation of more frequent reporting (monthly or quarterly).
Matching Principle – Income and related Expenses are recognized in the same period, which is the basis of Accrual accounting.
Accrual Basis of Accounting – The method of accounting used to ensure that the reporting of Income and Expenses are accurately reflected in the period
in which they occur. Income is not the same as cash collections and Expense is not the same as a cash payment.
Revenue Recognition Principle – Income is recognized when earned (when service is performed or when sale occurs), regardless of when payment is
received.
Expense Recognition Principle – Expenses are recognized when incurred (or used), regardless of when they are paid for.
7. Double-Entry Bookkeeping
Double-Entry Accounting – A system used to analyze and record business
transactions.
• Debit – an entry on the left side of an account
• Credit – an entry on the right side of the account
Chart of Accounts – A list of accounts used by an organization into which all
accounting transactions are recorded; sometimes referred to as the General Ledger.
9. Asset T-Accounts
Rules for Asset Accounts
• Increased on the debit side (left
side).
• Decreased on the credit side
(right side).
• The normal (usual) balance is
the increase or debit side.
Asset Account
Debit
+
Increase Side
Normal
Balance
Credit
-
Decrease
Side
10. Liability & Equity T-Accounts
Rules for Liability & Equity
Accounts
• Increased on the credit side
(right side).
• Decreased on the debit side (left
side).
• The normal (usual) balance is
the increase or credit side.
Liability/Equity Account
Debit
-
Decrease
Side
Credit
+
Increase Side
Normal
Balance
11. Income T-Accounts
Rules for Income Accounts
• Increased on the credit side
(right side).
• Decreased on the debit side (left
side).
• The normal (usual) balance is
the increase or credit side.
Income Account
Debit
-
Decrease
Side
Credit
+
Increase Side
Normal
Balance
12. Expense T-Accounts
Rules for Expense Accounts
• Increased on the debit side (left
side).
• Decreased on the credit side
(right side).
• The normal (usual) balance is
the increase or debit side.
Expense Account
Debit
+
Increase Side
Normal
Balance
Credit
-
Decrease
Side
13. Primary Accounting Reports
Income Statement – measures the results of operations over a particular
period of time by deducting all expenses from all income.
Balance Sheet – also known as the Statement of Financial Position, measures
the amount of Assets (total resources), Liabilities (total owed to others), and
Capital (amount left over after all obligations are paid out of existing
resources) at a particular moment in time.
Statement of Cash Flows – reports the inflows and outflows of cash during a
particular period of time.
14. AGENDA
Introduction
Accounting Basics and Definitions
The Income Statement
The Balance Sheet
The Cash Flow Statement
Common Accounting Transactions
Questions and Answers
15. Accounting is the language of business. You have to be as
comfortable with that as you are with your own native
language to really evaluate a business.
- Warren Buffet
16. The income statement is one of three financial
statements that you should become familiar with (the
other two are the balance sheet and cash flow
statement). Understanding an income statement is
essential in order to analyze the performance of an
organization.
17. The income statement summarizes a company’s
revenues (sales) and expenses on a periodic (monthly,
quarterly, annually) basis. Net sales and net income are
typically of most interest.
Income statements come with various monikers,
including “statement of income,” “statement of
earnings” and “statement of operations.” Other
terms include “P&L,” which stands for profit and loss
statement. They all mean the same thing.
18. The income statement “recognizes” revenue when
they are realized and expenses when incurred. With
accrual accounting, the flow of accounting events
through the income statement doesn’t necessarily
coincide with the actual receipt and disbursement of
cash. The income statement measures profitability,
not cash flow.
19. Income Statement Accounts
• Net Sales – The value of sales to customers, netting gross sales
and returns
• Cost of Sales – Expense incurred for materials (pp&b), labor (f/l
editing & design), and royalties, less project related subsidies
• Gross Profit – The difference between net sales and cost of
sales, but more importantly, the amount of resources available
to cover all other expenses
• Operational expenses – Departmental expenses not directly
related to any one project
• Operating income – Earnings from normal operations, before
non-operating income or expense (eg. institutional support,
endowment earnings)
• Non-book publishing income – Institutional support,
endowment income, journals income, distribution services
income
• Net income – aka The Bottom Line. The sum of ALL revenues
and expenses.
20. Gross Sales 2,816,238
Returns (429,595)
Net Sales 2,386,643
Cost of Goods Sold 1,156,080 (Mfg cost, Freight, Inventory W/O, Royalties)
Gross Margin 1,230,563
Other Publishing Income 159,905 (Income from permissions, licenses, etc)
Gross Operating Income 1,390,468
Operating Expenses
Editorial 482,779 (Salaries, Honoraria, Travel, F/L editing)
Production & Design 582,022 (Salaries, F/L design, etc)
Marketing 436,231 (Salaries, Commissions, Ads, Catalogs, Direct Mail)
Order Fulfillment 260,467 (Salaries, Warehouse costs)
Gen’l, Acctg & Admin 429,498 (Salaries, Equipment, Supplies, Utilities, Tele, etc)
Other 12,084
Total Operating Expenses 2,203,081
Net Operating Income (812,613)
Non-Book Publ. Income 750,560 (Institutional Support, Endowment Earnings,
Distribution Services, Journals income)
Net Income/(Loss) (62,530)
21. AGENDA
Introduction
Accounting Basics and Definitions
The Income Statement
The Balance Sheet
The Cash Flow Statement
Common Accounting Transactions
Questions and Answers
23. Balance Sheet Definition
• A balance sheet is a financial statement that summarizes a company's
(1) assets, (2) liabilities and (3) shareholders' equity at a specific point
in time. These three balance sheet segments give management an
idea as to what the company owns and owes, as well as the amount
invested by shareholders.
24. 3 Parts of the Balance Sheet
Assets =
Liabilities +
Capital / Equity
25. The Accounting Equation
• ASSETS = LIABILITIES + OWNERS EQUITY
OR
• ASSETS – LIABILITIES = OWNERS EQUITY
• Equity may also be referred to as the book value of the company
26. Further Breaking down the Balance Sheet
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Royalty Advances
Investments
Fixed Assets
Intangible Assets
Accounts Payable
Accrued Expenses
Wages Payable
Royalties Payable
Unearned Revenue
Long Term Debt
Retained Earnings
Treasury Stock
Additional Paid in Capital
ASSETS
(Provide future benefit)
LIABILITIES
(What I owe)
CAPITAL / EQUITY
(What am I worth)
= +
27. Further Breaking down the Balance Sheet
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Royalty Advances
Investments
Fixed Assets
Intangible Assets
Accounts Payable
Accrued Expenses
Wages Payable
Royalties Payable
Unearned Revenue
Long Term Debt
Retained Earnings
Treasury Stock
Additional Paid in Capital
ASSETS LIABILITIES CAPITAL / EQUITY
= +
• Exhibit Expenses
• Maintenance
• Editorial Stipend
28. Further Breaking down the Balance Sheet
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Royalty Advances
Investments
Fixed Assets
Intangible Assets
Accounts Payable
Accrued Expenses
Wages Payable
Royalties Payable
Unearned Revenue
Long Term Debt
Retained Earnings
Treasury Stock
Additional Paid in Capital
ASSETS LIABILITIES CAPITAL / EQUITY
= +
29. Further Breaking down the Balance Sheet
Cash
Accounts Receivable
Inventory
Prepaid Expenses
Royalty Advances
Investments
Fixed Assets
Intangible Assets
Accounts Payable
Accrued Expenses
Wages Payable
Royalties Payable
Unearned Revenue
Long Term Debt
Retained Earnings
Treasury Stock
Additional Paid in Capital
ASSETS LIABILITIES CAPITAL / EQUITY
= +
30. Example University Press
Balance Sheet
June 30, 2016
Assets Liabilities & Equity
Current Assets Accounts Payable 25,000
Cash 10,000 Accrued Expenses 5,000
Accounts Receivable 35,000 Unearned Revenue 30,000
Prepaid Expenses 5,000 Royalties Payable 20,000
Royalty Advances 10,000 Total Liabilities 80,000
Inventory 40,000
Non-current Assets Retained Earnings 20,000
Fixed Assets 15,000 Stock 1,000
Investments 10,000 Addt’l Paid in Capital 24,000
Total Equity 45,000
Total Assets 125,000 Total Liabilities & Equity 125,000
31. Contra Accounts
• A contra account is an account found in an account ledger that is used
to reduce the value of a related account. Items recorded in the contra
account are specifically designed to offset other transactions, and are
recorded as the opposite type of entry.
32. Examples of Contra Accounts
• Allowance for doubtful accounts
• Allowance for Sales Returns
Accounts Receivable
• Allowance for unearned / unrecoverable advances
Royalty Advances
• Allowance for obsolescence
Inventory
• Accumulated Depreciation
Fixed Assets
33. Why Set Up a Reserve?
• An asset contra account estimates a decline in an asset value before
you have certain knowledge that it has occurred
• Provides a more accurate reflection of the value of the enterprise
• Protects the enterprise from the need to take large, unexpected
“hits” to its profits
• Returns reserve
• Bad debt reserve
• Inventory reserve
34. Assets Liabilities & Equity
Current Assets Accounts Payable 25,000
Cash 10,000 Accrued Expenses 5,000
Accounts Receivable 35,000 Unearned Revenue 30,000
Prepaid Expenses 5,000 Royalties Payable 20,000
Royalty Advances 10,000 Total Liabilities 80,000
Allow. for unrecoverable Advances (2,000)
Inventory 40,000 Retained Earnings 18,000
Non-current Assets 15,000 Stock 1,000
Fixed Assets 15,000 Addt’l Paid in Capital 24,000
Investments 10,000 Total Equity 43,000
Total Assets 123,000 Total Liabilities & Equity 123,000
Example University Press
Balance Sheet
June 30, 2016
36. Common Accounting Transactions for Publishers
Sign author to write book and pay $2,500 royalty advance against royalties of
7.5% net.
Transaction 1
Debit
+
$2,500
Author Royalty Advances
Credit
-
$2,500
Cash
Asset Account Asset Account
37. Common Accounting Transactions for Publishers
Pay freelance editor $1,200 to copyedit manuscript.
Transaction 2
Debit
+
$1,200
Copyedit Expense
Credit
-
$1,200
Cash
Income Statement
Expense Account Asset Account
38. Common Accounting Transactions for Publishers
Pay $119,000 in staff salaries for the month: Acquisitions - $24,500;
Manuscript Editorial - $20,000; Des/Production - $22,000; Marketing -
$30,000; G&A - $22,500.
Transaction 3
Debit
+
$119,000
Staff Salary Expense
Credit
-
$119,000
Cash
Income Statement
Expense Account Asset Account
39. Common Accounting Transactions for Publishers
Pay compositor $2,500 for typesetting project.
Transaction 4
Debit
+
$2,500
Work-In-Process
Credit
-
$2,500
Cash
Asset Account Asset Account
40. Common Accounting Transactions for Publishers
Pay printer $10,500 for printing/binding 3,000 copies ($3.50 per unit).
Transaction 5
Debit
+
$10,500
Work-In-Process
Credit
-
$10,500
Cash
Asset Account Asset Account
41. Common Accounting Transactions for Publishers
Warehouse receives the 3,000 copies from the printer.
Transaction 6
Credit
-
$13,000
Work-In-Process
Debit
+
$13,000
Finished Goods Inventory
Asset Account Asset Account
42. Common Accounting Transactions for Publishers
Warehouse ships 300 review copies for the marketing department at $3.50
unit cost = $1,050. Postage for the shipments total $525.
Transaction 7
Debit
+
$1,050
Marketing Expense
Credit
-
$1,050
Finished Goods Inventory
Income Statement
Expense Account Asset Account
43. Common Accounting Transactions for Publishers
Warehouse ships 300 review copies for the marketing department at $3.50
unit cost = $1,050. Postage for the shipments total $525.
Transaction 7a
Debit
+
$525
Postage Expense
Credit
-
$525
Cash
Income Statement
Expense Account Asset Account
44. Common Accounting Transactions for Publishers
Marketing pays $2,500 for ad.
Transaction 8
Debit
+
$2,500
Marketing Expense
Credit
-
$2,500
Cash
Income Statement
Expense Account Asset Account
45. Common Accounting Transactions for Publishers
2,500 copies are sold on account ($30 at 45% discount) for total sales revenue
of $41,250. Invoice also includes $1,300 for shipping, for a total of $42,550.
Inventory value of copies sold is $3.50/unit x 2500 = $8,750.
Transaction 9
Debit
+
$42,550
Accounts Receivable
Credit
+
$41,250
Book Sales Income
Asset Account
Income Statement
Income Account
46. Common Accounting Transactions for Publishers
2,500 copies are sold on account ($30 at 45% discount) for total sales revenue
of $41,250. Invoice also includes $1,300 for shipping, for a total of $42,550.
Inventory value of copies sold is $3.50/unit x 2500 = $8,750.
Transaction 9a
Debit
+
Accounts Receivable
Credit
-
$1,300
Postage Income
Asset Account
Income Statement
Income Account
47. Common Accounting Transactions for Publishers
2,500 copies are sold on account ($30 at 45% discount) for total sales revenue
of $41,250. Invoice also includes $1,300 for shipping, for a total of $42,550.
Inventory value of copies sold is $3.50/unit x 2500 = $8,750.
Transaction 9b
Credit
-
$8,750
Finished Goods Inventory
Debit
+
$8,750
Cost of Goods Sold
Asset Account
Income Statement
Expense Account
48. Common Accounting Transactions for Publishers
500 copies are returned for credit of $8,250. Inventory value of copies sold is
$3.50/unit x 500 = $1,750.
Transaction 10
Credit
-
$8,250
Accounts Receivable
Debit
-
$8,250
Book Sales Revenue
Asset Account
Income Statement
Income Account
49. Common Accounting Transactions for Publishers
500 copies are returned for credit of $8,250. Inventory value of copies sold is
$3.50/unit x 500 = $1,750.
Transaction 10a
Debit
+
$1,750
Finished Goods Inventory
Credit
-
$1,750
Cost of Goods Sold
Asset Account
Income Statement
Expense Account
50. Common Accounting Transactions for Publishers
End of year inventory write-down – using 3-year write-down at $1.16/unit x
700 copies remaining in inventory = $812.
Transaction 11
Credit
-
$812
Finished Goods Inventory
Debit
+
$812
Cost of Goods Sold
Asset Account
Income Statement
Expense Account
51. Common Accounting Transactions for Publishers
500 copies are remaindered at $2.00 each for total income of $1,000.
Inventory value for copies sold is ($3.00-$1.16)= $2.34/copy x 500 = $1,170.
Transaction 12
Debit
+
$1,000
Cash or Accts Receivable
Credit
+
$1,000
Book Sales Income
Asset Account
Income Statement
Income Account
52. Common Accounting Transactions for Publishers
500 copies are remaindered at $2.00 each for total income of $1,000.
Inventory value for copies sold is ($3.00-$1.16)= $2.34/copy x 500 = $1,170.
Transaction 12a
Credit
-
$1,170
Finished Goods Inventory
Debit
+
$1,170
Cost of Goods Sold
Asset Account
Income Statement
Expense Account
53. Common Accounting Transactions for Publishers
200 copies are pulped. Inventory value for copies pulped is ($3.00-$1.16)=
$2.34/copy x 200 = $468.
Transaction 13
Credit
-
$468
Finished Goods Inventory
Debit
+
$468
Cost of Goods Sold
Asset Account
Income Statement
Expense Account
54. Common Accounting Transactions for Publishers
Pay author royalties - $33,000 net sales x 7.5% = $2,475.
Transaction 14
Credit
-
$2,475
Author Royalty Advances
Debit
+
$2,475
Royalty Expense
Asset Account
Income Statement
Expense Account
55. Common Accounting Transactions for Publishers
Pay author royalties - $33,000 net sales x 7.5% = $2,475.
Write-off balance of unearned advance.
Transaction 14a
Credit
-
$25
Author Royalty Advances
Debit
+
$25
Royalty Expense
Asset Account
Income Statement
Expense Account
56. Common Accounting Transactions for Publishers
Collect $34,000 from customers.
Transaction 15
Debit
+
$34,000
Cash
Credit
-
$34,000
Accounts Receivable
Asset Account Asset Account
57. Common Accounting Transactions for Publishers
Pay fulfillment vendor $3,500 for services.
Transaction 16
Credit
-
$3,500
Cash
Debit
+
$3,500
Fulfillment Expense
Asset Account
Income Statement
Expense Account
58. Common Accounting Transactions for Publishers
Purchase copier machine at a cost of $15,000 and depreciate first year
assuming a 4-year expected life - $15,000 / 4 = $3,750.
Transaction 17
Credit
-
$15,000
Cash
Debit
+
$15,000
Furniture & Equipment
Asset Account Asset Account
59. Common Accounting Transactions for Publishers
Purchase copier machine at a cost of $15,000 and depreciate first year
assuming a 4-year expected life - $15,000 / 4 = $3,750.
Transaction 17a
Debit
+
$3,750
Depreciation Expense
Credit
+
$3,750
Accumulated Depreciation
Income Statement
Expense Account
Contra-Asset Account
60. Common Accounting Transactions for Publishers
Library purchases subscription to a quarterly journal for $100.
Transaction 18
Debit
+
$100
Cash
Credit
+
$100
Deferred Revenue
Asset Account Liability Account
61. Common Accounting Transactions for Publishers
Journal issue mails – recognize income for one issue.
Transaction 19
Debit
+
$25
Deferred Revenue
Credit
+
$25
Subscription Revenue
Asset Account
Income Statement
Income Account
62. Assets Liabilities & Equity
Current Assets Accounts Payable $0
Cash ($122,125) Accrued Expenses $0
Accounts Receivable $300 Unearned Revenue $75
Inventory $2,500 Royalties Payable $0
Royalty Advances $0 Total Liabilities $75
Total Current Assets ($119,325) Equity
Non-current Assets Current Surplus (Deficit) ($108,150)
Fixed Assets $15,000 Retained Earnings $0
Accumulated Depreciation ($3,750)
Total Fixed Assets $11,250 Total Equity ($108,150)
Total Assets ($108,075) Total Liabilities & Equity ($108,075)
Common Accounting Transactions
Balance Sheet - June 30, 2017
63. Common Accounting Transactions
Income Statement for the Period Ending June 30, 2017
Gross Book Sales $42,250
Sales Returns ($8,250)
Net Book Sales $34,000
Postage Income $1,300
Journals Subscription Revenue $25
Total Sales Revenue $35,325
Cost of Books Sold $9,450
Royalty Expense $2,500
Total Cost of Goods Sold $11,950
Gross Margin $23,375
Operating Expenses:
Staff Salaries $119,000
Freelance Copyediting Expense $1,200
Marketing Space Advertising $2,500
Marketing Review Copies $1,050
Postage Expense $525
Fulfillment Expense $3,500
Depreciation Expense $3,750
Total Operating Expenses $131,525
Net Income (Deficit) ($108,150)
64. AGENDA
Introduction
Accounting Basics and Definitions
The Income Statement
The Balance Sheet
The Cash Flow Statement
Common Accounting Transactions
Questions and Answers