Course Objectives:
Terminology and definitions used in the accounting language.
Identify why accounting is a necessary skill.
Summarize the history of accounting.
Identify and describe assets, liabilities and owners' equity.
Demonstrate the effects of business transactions on the accounting equation
Recognize and compare the major financial reports.
Describe and create a company's Income Statement.
Compare and contrast a company's revenue, expenses, income, and retained earnings.
Identify the key elements of a Balance Sheet.
Balance the accounting equation and properly chart debits and credits.
Describe the accounting cycle.
Define key terms: inventory, FIFO, LIFO, Cost of Goods Sold.
Summarize cash flow, identify fixed assets, and describe depreciation.
Know what to expect in an audit.
Basic accounting in 10 mints
This powerpoint teaches the basics of bookkeeping and accounting. It includes details about debits and credits, assets, liabilities, sales, and expenses. Examples are provided and a quick description of the chart of accounts, profit and loss statements and the balance sheet is also included.
Introduction to Accounting
By. Prof Navneet Saxena
IBS Gurgaon
Objective:
At the end of this session you should be able to understand
Distinction among Financial Accounting, Cost Accounting and Management Accounting
Evolution of Accounting
Basic Concepts of Financial Accounting
Conventions of Accounting
Stages of Preparing Accounting Statements
From Input to Output
Users of Financial Statements
Advantages of Accounting
Generally Accepted Accounting Principles
Wayne Lippman presents Accounting BasicsWayne Lippman
Wayne Lippman presents Accounting Basics. This basic overview of the accounting process from Wayne Lippman CPA covers the basic principals of accounting. It includes discussions of accounting ethics, accounting process, roles, Generally Accepted Accounting Practices (GAAP).
Basic accounting in 10 mints
This powerpoint teaches the basics of bookkeeping and accounting. It includes details about debits and credits, assets, liabilities, sales, and expenses. Examples are provided and a quick description of the chart of accounts, profit and loss statements and the balance sheet is also included.
Introduction to Accounting
By. Prof Navneet Saxena
IBS Gurgaon
Objective:
At the end of this session you should be able to understand
Distinction among Financial Accounting, Cost Accounting and Management Accounting
Evolution of Accounting
Basic Concepts of Financial Accounting
Conventions of Accounting
Stages of Preparing Accounting Statements
From Input to Output
Users of Financial Statements
Advantages of Accounting
Generally Accepted Accounting Principles
Wayne Lippman presents Accounting BasicsWayne Lippman
Wayne Lippman presents Accounting Basics. This basic overview of the accounting process from Wayne Lippman CPA covers the basic principals of accounting. It includes discussions of accounting ethics, accounting process, roles, Generally Accepted Accounting Practices (GAAP).
Tax Audit - Changes in form 3CD - August 2014Ameet Patel
The Indian tax authorities have amended the tax audit report format recently. The changes are drastic and cast a huge responsibility on the already burdened tax auditors. The changes are discussed in this presentation.
The Revised Guidance Note on Tax Audit issued by ICAI has also been considered while preparing this presentation.
Only the new clauses or the amended clauses have been considered. The clauses that have not undergone any change have not been considered.
Navigating Successfully in the Corporate WorldZeeshan James
To navigate successfully in the corporate world; one need to analyze the key factors of Corporate Culture, Workplace Politics, Office Etiquette, Work-space Courtesy, certain Laws to remember, tips to Sharpen their saw and avoid things that distracts often...
@JamesZeeshan
Foundations of Competitive Strategy (Part I)ProfessorDeitz
Powerpoint slides to accompany lecture on Foundations of Competitive Strategy.
Review history of economic thought. Links mainstream (neoclassical) economic thought to predominant strategy frameworks, such as Porter's 5 forces model and Value Chain. Critique of mainstream approaches, introduction to evolutionary economics and contemporary strategy frameworks.
This material is for PGPSE / CSE students of AFTERSCHOOOL. PGPSE / CSE are free online programme - open for all - free for all - to promote entrepreneurship and social entrepreneurship PGPSE is for those who want to transform the world. It is different from MBA, BBA, CFA, CA,CS,ICWA and other traditional programmes. It is based on self certification and based on self learning and guidance by mentors. It is for those who want to be entrepreneurs and social changers. Let us work together. Our basic idea is that KNOWLEDGE IS FREE & AND SHARE IT WITH THE WORLD
- The fascinating history of medicine from ancient to modern times
- The most important events in the history of medicine: the main figures, discoveries and issues.
- An attractive decoration for medical offices, patient waiting rooms, hospitals, clinics and health centers
The Presentation includes:
TREPANNING, SHAMANISM, ÖTZI THE ICEMAN, ĀYURVEDIC MEDICINE, ANCIENT BABYLONIAN MEDICINE, EDWIN SMITH PAPYRUS, CULT OF ASCLEPIUS, TRADITIONAL CHINESE MEDICINE, YIN-YANG BALANCE, CHI FLOW, ACUPUNCTURE, HIPPOCRATES, SCHOOL OF ALEXANDRIA, CLAUDIUS GALEN, ANCIENT ROMAN MEDICINE, HÔTEL-DIEU HOSPITAL, BYZANTINE MEDICINE, BENEDICTINE HOSPITAL, MEDIEVAL MONASTIC MEDICINE, PERSIAN-ARABIC-ISLAMIC MEDICINE, FIRST MEDICAL SCHOOL SALERNO, AVICENNA, THE CANON OF MEDICINE, HILDEGARD VON BINGEN, BUBONIC PLAGUE, ALCHEMY, FIRST PHARMACIES, BARBER-SURGEONS, PARACELSUS, PHARMACOLOGY, ANDREAS VESALIUS, AMBROISE PARÉ, CHILDBIRTH FORCEPS, OBSTETRICS & GYNECOLOGY, MICROSCOPE, ANTONIE VAN LEEUWENHOEK, BLOOD CIRCULATION, WILLIAM HARVEY, LYMPHATIC SYSTEM, THOMAS BARTHOLIN, DENTISTRY, PIERRE FAUCHARD, ALBINUS, PATHOLOGY, GIOVANNI BATISTA MORGAGNI, HOMEOPATHY, SAMUEL HAHNEMANN, SMALLPOX VACCINATION, EDWARD JENNER, HISTOLOGY, XAVIER BICHAT, MORPHIUM, FRIEDRICH SERTURNER, STETHOSCOPE, RENÉ LAENNEC, BLOOD TRANSFUSION, JAMES BLUNDELL, INTREVENOUS SALINE, ANAESTHETIC, WILLIAM MORTON, SPIROMETER, ANTISEPTIC PROCEDURES, IGNAZ SEMMELWEIS, OPHTHALMOSCOPE, HERMANN VON HELMHOLTZ, SYRINGE, HYDROTHERAPY, VINZENZ PRIESSNITZ, SEBASTIAN KNEIPP, CELLULAR PATHOLOGY, RUDOLF VIRCHOW, SNELLEN EYE CHART, GERM THEORY OF DISEASE, LOUIS PASTEUR, ROBERT KOCH, BACTERIOLOGY, MICROBIOLOGY, GENETICS, GREGOR MENDEL, RED CROSS, HENRY DUNANT, ANTISEPTICAL SURGICAL METHODS, JOSEPH LISTER, FRIEDRICH MIESCHER, FLORENCE NIGHTINGALE, SOCIAL HEALTH INSURANCE, ANTITOXINS, EMIL VON BEHRING, VIRUSES, X-RAYS, WILHELM CONRAD ROENTGEN, ASPIRIN, CHILD HEALTHCARE, ABRAHAM JACOBI, PSYCHOANALYSIS, SIGMUND FREUD, BLOOD GROUPS, KARL LANDSTEINER, CHROMOSOMES, HORMONS & ENDOCRINOLOGY, ELECTROCARDIOGRAPHY, WILLEM EINTHOVEN, ALLERGY RESEARCH, CLEMENS VON PIRQUET, PAUL EHRLICH, VITAMINS, CASIMIR FUNK, NEUROTRANSMISSION, OTTO LOEWI, INSULIN, ELECTROENCEPHALOGRAM, HEART CATHETER, WERNER FORSSMANN, PENICILLIN, ALEXANDER FLEMING, VITAMIN C, ALBERT SZENT-GYÖRGYI, ANTIHISTAMINE, DANIEL BOVET, LSD, ALBERT HOFMANN, DIALYSIS MACHINE, WILLEM KOLFF, MAMMOGRAPHY, RAUL LEBORGNE, WORLD HEALTH ORGANIZATION, CHEMOTHERAPY, DEFIBRILLATOR, PROTEIN AMINO ACID SEQUENCE, FRED SANGER, POLIO VACCINE, HEART-LUNG MACHINE, ENDOSCOPE, DNA STRUCTURE, HEART PACEMAKER, ULTRASOUND DIAGNIOSTIC, SONOGRAPHY, CONTACT LENSES, HIP REPLACEMENT, HEART TRANSPLANT, CHRISTIAAN BARNARD, COMPUTER TOMOGRAPHY, GODFREY HOUNDSFIELD, LASER EYE SURGERY, MAGNETIC RESONANCE IMAGING, MONOCLONAL ANTIBODIES, IN VITRO FERTILIZATION, DNA PROFILING, INTRAVASCULAR STENT, LAPAROSCOPY, RNA INTERFERENCE, TELESURGERY, VIAGRA, HUMAN GENOME PROJECT, PLURIPOTENT STEM CELLS, FACE TRANSPLANT
Classic and stylish tie knots with step by step instructions
The poster includes among others:
FOUR IN HAND, HALF WINDSOR, WINDSOR, PRATT/SHELBY/AMERICAN, KENT/SIMPLE/ORIENTAL, BALTHUS, HANOVER, CHRISTENSEN/CROSS KNOT, ST ANDREW, PLATTSBURGH, KELVIN, VICTORIA/PRINCE ALBERT/DOUBLE FOUR IN HAND
FOUNDATIONS OF PSYCHOLOGY
CEE PORTAL Educational Posters (www.cee-portal.at)
Overview of the history of psychological thinkingThe hall of fame of psychology
Essential thinkers, classic theories
Why do we do the things we do, think the thoughts we think, and feel the ways that we feel?
Major contributors and key themes in understanding the human mind
Wine Tasting Poster - Use your senses to evaluate different wine attributes Kolmhofer Martin
Wine Tasting Poster Preview (Size: 58x78 cm (22.8 x 30.7 inches)
Elegantly designed to improve your wine knowledge
An attractive addition to any kitchen, wine cellar, or restaurant
An ideal gift for all wine lovers
600 terms in 5 languages
Use your senses to evaluate different wine attributes
Describe a wine in words
“WINE & FOOD” Poster
Size: 58x78 cm (22.8 x 30.7 inches)
http://bit.ly/1VXy5Qw
in 5 Languages - Poster Voucher Code: LqhWqP
Classic and inventive food and wine combinations
Wine pairing solutions for a wide range of popular dishes
Creating the perfect taste sensation
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
1. Elemental Economics - Introduction to mining.pdfNeal Brewster
After this first you should: Understand the nature of mining; have an awareness of the industry’s boundaries, corporate structure and size; appreciation the complex motivations and objectives of the industries’ various participants; know how mineral reserves are defined and estimated, and how they evolve over time.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
CRISIL evaluates lenders in India by analyzing financial performance, loan portfolio quality, risk management practices, capital adequacy, market position, and adherence to regulatory requirements. This comprehensive assessment ensures a thorough evaluation of creditworthiness and financial strength. Each criterion is meticulously examined to provide credible and reliable ratings.
8. History of Accounting ) "Double-entry bookkeeping is one of the most beautiful discoveries of the human spirit… “ ( Johann Wolfgang Von Goethe 1796)
12. Money as a Unit of Account But if everybody charges in the same item, that is money, it becomes very clear who has the lowest price. What if one supplier wants to be paid in babysitting, another one in computer help and another in petsitting and so on… “ Standard unit of measurement” = “Language of business”
16. Why do we need accounting? It´s all about people…
17. Why do we need accounting? Unlimited Wants vs. Limited Resources Unlimited Wants: Only perfect beings want nothing… Limited Resources: Time, Energy, Money…
18. Why do we need accounting? Choices must be made…
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21. The Price Mechanism How to distribute resources rationally in the economy? Capitalist solution is the Price Mechanism Those who are willing to pay the price will get the goods and services
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23. Equilibrium Price Subjective preference rankings interact to yield objective money prices Equilibrium occurs when quantity supplied equals quantity demanded Market price will be stable, that is it won’t tend to change, when you reach the point at which willingness to buy coincides with willingness to sell in the market
24. Equilibrium Price Subjective preference rankings interact to yield objective money prices At 3 dollars every seller can find a willing buyer…
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26. Equilibrium Price - Shortage Subjective preference rankings interact to yield objective money prices Buyers start to compete to get the available units
27. Equilibrium Price Subjective preference rankings interact to yield objective money prices Price goes up and consequently quantity demanded drops and quantity supplied rises until we get to equilibrium again
28. Equilibrium Price Subjective preference rankings interact to yield objective money prices What about a higher price, like 5 dollars?
29. Equilibrium Price - Surplus Subjective preference rankings interact to yield objective money prices When the quantity demanded is less than the quantity supplied we have a surplus and the price will drop. At 5 dollars sellers are happy providing 5 units but buyers are unhappy, they only want one unit. 3 Dollars = “MARKET CLEARING PRICE” (clears the market of all surpluses and shortages)
31. Disadvantages of the Price Mechanism In our market economy it´s the market that determines price and price serves as the rationing mechanism to determine who gets the scarce product or service and who does not.
34. Price Mechanism – Rationing, Price Ceilings What would happen if you force a price that is not the equilibrium price? Example: Government imposes price ceiling on gasoline At the imposed price of 2,50 the quantity demanded is greater than quantity supplied. This means that not everyone is going to get the gasoline that they want, because there is a shortage. WHAT WILL HAPPEN?
39. “ The Invisible Hand” – Adam Smith Adam Smith was the first economist who investigated how this process of social coordination works. Rational, self-interested behaviour does not produce chaos, but usually produces social coordination
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41. Division of Labour Coordination through money prices Supply, demand, and prices in input and output markets determine the allocation of resources and the ultimate combinations of things produced. EXAMPLES OF “CREATIVE DESTRUCTION”: Polaroid Cameras, Typewriter, SteamTrains.... CONSUMER LABOUR – LAND - CAPITAL
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54. Users of accounting information Shareholders / Investors ANALYST COVERAGE: Financial Analyst: A financial professional who studies various industries and companies, providing research and valuation reports, and making buy, sell, and hold recommendations.
57. Users of accounting information Internal: Trade Unions Knowing what a company is making will give them an insight on how much they can demand
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63. Users of accounting information External: Suppliers Suppliers – will look at a company’s balance sheet and profit and loss account to see if and how much credit they are willing to give: METHODS OF PAYMENT IN INTERNATIONAL TRADE: Rule (especially for international trade): NEVER sell on open account to a new customer (only against credit card or advance payment)
97. Balance Sheet ASSETS = LIABILITES + EQUITY Declining order of liquidity For the asset side, the accounts are classified typically from most liquid to least liquid. For the liabilities side, the accounts are organized from short to long-term borrowings and other obligations. Balance sheet of Bakery & Co. Balance sheet as at 1 January 2010 Assets Liabilities & Equity Current Assets Current Liabilities Cash and Cash Equivalents 250 Accounts Payable 350 Inventories 300 Short-term Loan 200 Accounts Receivable 700 Current Tax Liabilities 100 Prepaid Expenses 50 Accrued Liabilities 100 Total Current Assets 1300 Total Current Liabilities 750 Fixed Assets Non-Current Liabilities Property, Plant, and Equipment 1550 Bank Loans 600 Total Fixed Assets 1550 Issued Debt Securities 1100 Deferred Tax Liability 100 Intangible Assets and Goodwill Total Non-Current Liabilities 1800 Intangible Assets 300 Goodwill 0 Total IA and Goodwill 300 Equity Common Stock 400 Other Assets Retained earnings 100 Investments 0 Reserves 50 Total Other Assets 0 Net Income 50 Equity 600 Total Assets 3150 Total Liabilities & Equity 3150
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102. Balance Sheet Balance sheet of Bakery & Co. Balance sheet as at 1 January 2010 Assets Liabilities & Equity Current Assets Current Liabilities Cash and Cash Equivalents 250 Accounts Payable 350 Inventories 300 Short-term Loan 200 Accounts Receivable 700 Current Tax Liabilities 100 Prepaid Expenses 50 Accrued Liabilities 100 Total Current Assets 1300 Total Current Liabilities 750 Fixed Assets Non-Current Liabilities Property, Plant, and Equipment 1550 Bank Loans 600 Total Fixed Assets 1550 Issued Debt Securities 1100 Deferred Tax Liability 100 Intangible Assets and Goodwill Total Non-Current Liabilities 1800 Intangible Assets 300 Goodwill 0 Total IA and Goodwill 300 Equity Common Stock 400 Other Assets Retained earnings 100 Investments 0 Reserves 50 Total Other Assets 0 Net Income 50 Equity 600 Total Assets 3150 Total Liabilities & Equity 3150
117. Did you note regularities? Yes? Because there are… 4 Basic Types of Transactions ASSETS = LIABILITIES + EQUITY Transactions may increase both sides of the equation (left and right side both increase - transaction type (a) , decrease both sides of the equation (left and right side both decrease - transaction type (b) , or increase and decreases on the same side of the equation (increase and decrease on the left side - transaction type (c) or an increase and decrease on the right side transaction (d) , the equation always balances .
118. How Transactions impact the Accounting Equation · · Transactions Assets = Liabilities + Owner's Equity Left Side Right Side Right Side Increase Decrease Decrease Increase Decrease Increase 1. ABC mows a client's yard and receives a check from the customer for $50 for the service provided. 2. ABC purchases $100 worth of office supplies and stores them in their storage room. The office supply store gives them an invoice that allows them to pay for them in 15 days (on account). 3. ABC places an ad in the local newspaper receives the invoice from the supplier and writes a check for $25 to the newspaper. 4. ABC purchases five mowers for $10,000 and finances them with a loan from the local bank. 5. ABC mows another customer's yard and sends the customer a $75 bill (invoice) for the service they performed. They allow their customer ten (10) days to pay them for this service (on account). 6. The owner of ABC needs a little money to pay some personal bills and writes himself a check for $500. 7. ABC pays the office supply company $100 with a check for the office supplies that they charged (promised to pay). 8. ABC receives a check from the customer who they billed (invoiced) $75 for services and allowed 10 days to pay. 9. ABC purchased some mulch for $60 and received an invoice from their supplier who allows them 15 days to pay. The mulch was used on a customer's yard. 10. ABC bills (prepares an invoice) the customer $80 for the mulch and mowing his yard and receives a check for $80 from the customer. Totals $10,380 $700 $100 $10,160 $585 $205 Net Change $9,680 Increase $10,060 Increase $380 Decrease Total Net Changes $9,680 Increase $9,680 Increase
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125. How Transactions impact the Accounting Equation Proper Recording Actually Uses Revenue, Expense & Draws Instead Of Owner's Equity Original Recording Proper Recording Uses Transactions Owner's Equity Revenue Expense Withdrawal Right Side Decrease Increase Revenue Increases Resulting In an Increase to Equity Expenses Increase Resulting In a Decrease to Equity Withdrawals Increase Resulting in a Decrease to Equity 1. ABC mows a client's yard and receives a check from the customer for $50 for the service provided. 50 3. ABC places an ad in the local newspaper receives the invoice from the supplier and writes a check for $25 to the newspaper. 25 5. ABC mows another customer's yard and sends the customer a $75 bill (invoice) for the service they performed. They allow their customer ten (10) days to pay them for this service (on account). 75 6. The owner of ABC needs a little money to pay some personal bills and writes himself a check for $500. 500 9. ABC purchased some mulch for $60 and received an invoice from their supplier who allows them 15 days to pay. The mulch was used on a customer's yard. 60 10. ABC bills (prepares an invoice) the customer $80 for the mulch and mowing his yard and receives a check for $80 from the customer. 80
139. Statement of Retained Earnings (Statement of Equity) The statement of retained earnings reports how net income and dividends affected a company´s financial position during the period. Note that the Income Statement must be prepared before the Statement of Retained Earnings
140. Example: Statement of Equity Many companies provide an expanded statement of stockholders’ equity instead of the required statement of retained earnings. The statement of stockholders’ equity portrays not only the changes in retained earnings, but also changes in other equity accounts. These other equity accounts include capital stock and potentially a lot of other amounts related to topics like par value, preferred stock, treasury stock, and the like…
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143. Statement of Cash Flows … cannot be manipulated with accounting tricks
150. Accounts, debits and credits ACCOUNTS The records that are kept for the individual asset, liability, equity, revenue, expense, and dividend components are known as accounts .
160. THE GENERAL LEDGER The journal contains page after page of detailed accounting transactions. In contrast, the general ledger contains a page for each and every account in use by a company.
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162. POSTING To “post” means to copy the entries listed in the journal into their respective ledger accounts.
165. Source Documents A receipt is a written acknowledgement that a specified article or sum of money has been received as an exchange for goods or services. = Source document for expenses
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167. THE TRIAL BALANCE After all transactions have been posted from the journal to the ledger, it is a good practice to prepare a trial balance. A trial balance is simply a listing of the ledger accounts along with their respective debit or credit balances:
168. THE TRIAL BALANCE Since each transaction was journalized in a way that insured that debits equaled credits, one would expect that this equality would be maintained throughout the ledger and trial balance. If the trial balance fails to balance, an error has occurred and must be located.
174. FINANCIAL STATEMENTS FROM THE TRIAL BALANCE So to summarize… The basic process is to transfer amounts from the general ledger to the trial balance, then into the financial statements
213. The adjusting process and related entries A common characteristic of an adjusting entry is that it will involve one income statement account and one balance sheet account. (The purpose of each adjusting entry is to get both the income statement and the balance sheet to be accurate.)
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217. The adjusting process and related entries Example: Prepaid insurance A three-year insurance policy was purchases on January 1, 20x1, for $9,000. The following entry would be needed to record the transaction on January 1:
218. The adjusting process and related entries Example: Prepaid Rent Assume a two-month rent is entered and rent paid in advance on March 1, 20X1, for $3,000. By March 31, 20X1, half of the rental period has lapsed, and financial statements are to be prepared. The following entries would be needed to record the transaction on March 1, and adjust rent expense and prepaid rent on March 31:
223. The adjusting process and related entries Unearned revenue Often, a business will collect monies in advance of providing goods or services. For example, you sell a one-year software licence and collect the full payment at the beginning of the subscription period: EXAMPLES?
229. The adjusting process and related entries ACCRUALS – Accrued revenue Many businesses provide services to clients under an understanding that they will be periodically billed for the hours (or other units) of service provided. As a result, money has been earned during a month, even though it won’t be billed until the following month. Accrual accounting concepts dictate that such revenues be recorded when earned. The following entry would be needed at the end of December to accrue revenue for services rendered to date (even though the physical billing of the client may not occur until January): EXAMPLES?
244. Classified Balance Sheets To facilitate proper analysis, accountants will often divide the balance sheet into categories or classifications. The result is that important groups of accounts can be identified and subtotaled. Such balance sheets are called “classified balance sheets.”
245. Classified Balance Sheets The asset side of the balance sheet may be divided into the following SUB-CATEGORIES: Current assets; Fixed Assets; Intangible assets; Other assets.
246. Classified Balance Sheets Current Assets Current Assets include cash and those assets that will be converted into cash or consumed in a relatively short period of time; specifically, those assets that will be converted into cash or consumed within one year or the operating cycle, whichever is longer.
247. Classified Balance Sheets Current Assets The operating cycle for a particular company is the period of time it takes to convert cash back into cash (i.e., purchase inventory, sell the inventory on account, and collect the receivable); this is usually less than one year. It is determined by adding the number of days inventory is held and the collection period for accounts receivable
253. INVENTORY – Perpetual Inventory System Scanners scan the products and automatically update the sales and inventory records
254. INVENTORY – Perpetual Inventory System PERPETUAL vs. PERIODICAL INVENTORY Which dealer would you rather deal with ? The one who can call it up on their computer and determine immediately if they have any and give you the price or the dealer that puts you on hold and has to look around his store and try to physically locate the item and determine the price? BUT: Also Perpetual Inventory Systems need to have a physical count – WHY? Perpetual Inventory Systems are only as good as the people who maintain it - verify that they actually do have the part…
262. INVENTORY – Cost of Goods sold An inventory count on October 30 showed 500 units in the warehouse. 1) What is the cost of goods sold for October under the FIFO method ? 2) What is the cost of goods sold for October under the LIFO method? 3) What is the cost of goods sold for October under the weighted average method?