Lecture 4 .pptx - ‫ن‬ ‫ه‬ ‫سم ِ الل ِ‬ ‫الر ْ‬ ‫بِ ْ‬ ‫ح...

Chapter
2-1
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Chapter
2-2
Accounting Information for
Decision Making
Accounting Information for
Decision Making
Dr. Ashraf Hassan ,
Accounting Department ,
Alex University
2
Faculty of
international
Business and
Humanities (FIBH)
Lecture
(4)

Chapter
2-3
1- 2
After studying this material , you should be able to:
1-
Explain what financial accountants exactly do in a company
2- Identify what the main objective of the financial accounting is
3- Identify the five main categories in the financial statements .
4- Explain the four main financial statements that should be prepared .
5- Identify When and how these financial statements are prepared .
6 – Explain in short the basic accounting equation .
Learning Objectives
Learning Objectives

Chapter
2-4

Because financial statements are prepared on an annual
basis (yearly) so, we can classify assets into two groups:

Because financial statements are prepared on an annual
basis (yearly) so, we can classify assets into two groups:
Resources owned by the company which provide it future benefits
Accounting Categories of Financial statements
Accounting Categories of Financial statements
1.
Assets
Short Term Assets
Current Assets
Long Term Assets
Non-Current Asset
Property, Plants, & Equipment
(PPE)
1- Land
2- Buildings
3- Equipment : Machines
Computers - Furniture
4- Cars (Trucks)
1- Cash:
Available money in the
company's treasury or in its bank account.
2- A ccounts R ecievable ( AR ) :
Money owed to you by others but still
not collected yet.
Benefits for more than one year
Benefits for less than one year
( what the company
owns
)

Chapter
2-5
1.
Assets
Short Term Assets
Current Assets
Long Term Assets
Non-Current Asset
Property, Plants, & Equipment
(PPE)
1- Land
2- Buildings
3- Equipment : Machines
Computers - Furniture
4- Cars (Trucks)
1- Cash:
Available money in the company's
treasury or in its bank account.
2- A ccounts R ecievable ( AR ) :
Money owed
to you by others but still not collected yet.
3- N otes R ecievable ( NR ) :
your money but still
not collected yet and proven with a paper.
4- Supplies:
whatever we use to do our work like
pens and papers .
5- Inventory: Goods not sold yet in merchandise
company.
6- Prepaid expenses
: Expenses paid in advance
Benefits for more than
one year
Benefits for less than one year

Chapter
2-6

Land – Building – Equip. – Cars – Trucks – Supplies – Inventory :
Increase by purchasing .
Decrease by selling .

Cash:
Increase by collecting or receiving money in cash or by check .
. Decrease by paying money in cash or by check .

A ccounts R ecievable ( AR ):
Increase by
1- billing customers , 2- performing a service ,
3- service rendering 4- selling asset, all on account or on
credit
.
Decrease by collecting money from customers.

N otes R ecievable ( NR ) :
like AR but with a written paper.

Prepaid expenses:
Change in Assets