Review for Final - Spring 2016 Accounting 2600 Class Review of Keys Charts for the Final Scott Becker Spring 2016 Accounting 2600 Class Chapter 1 Scott

Review for Final - Spring 2016 Accounting 2600 Class Review...

This preview shows page 1 - 16 out of 140 pages.

Accounting 2600 Class Review of Keys Charts for the Final Scott Becker 4/10/17 4/10/17 Spring 2016
Image of page 1
Accounting 2600 Class Chapter 1 Scott Becker 4/10/17 4/10/17 Spring 2016
Image of page 2
Businesses: Forms and Activities LO-2 Many Companies are formed as Limited Liability Corporations (LLC)
Image of page 3
Business Activities LO-2
Image of page 4
Shave Ice Company Investment Money Loan or Capital Purchase Assets Operations Dividend or Reinvest
Image of page 5
Communication of Accounting Information LO-3
Image of page 6
Financial Statements Companies prepare four basic financial statements: The balance sheet reports the resources (assets) owned by a company and the claims against those resources (liabilities and stockholders’ equity) at a specific point in time. The income statement reports how well a company has performed its operations (revenues, expenses, and income) over a period of time. LO-3
Image of page 7
Financial Statements (cont.) The retained earnings statement reports how much of the company’s income was retained in the business and how much was distributed to owners over a period of time. The statement of cash flows reports the sources and uses of a company’s cash over a period of time. LO-3
Image of page 8
Timing of Financial Statements LO-3
Image of page 9
Comparability of Financial Statements In order to make it easier to use financial statements over time and across companies, a common set of rules and conventions have been developed to guide the preparation of financial statements. These rules and conventions, called generally accepted accounting principles (GAAP) , were developed by several different organizations over a number of years. LO-3
Image of page 10
Comparability of Financial Statements (cont.) In the United States, the Securities and Exchange Commission (SEC) has the power to set accounting rules for publicly traded companies. However, the SEC has delegated this authority to the Financial Accounting Standards Board (FASB). LO-3
Image of page 11
Comparability of Financial Statements (cont.) While the FASB is the primary accounting standard setter in the United States, the FASB has been working closely with the International Accounting Standards Board (IASB) in its development of international financial reporting standards (IFRS). LO-3
Image of page 12
Fundamental Accounting Equation LO-3 The left side shows the assets, or economic resources of a company. The right side of the accounting equation indicates who has a claim on the company’s assets. Creditor claims are liabilities. Owner claims in the form of stockholders’ equity.
Image of page 13
The Classified Balance Sheet LO-4
Image of page 14
Current Assets Current assets consist of cash and other assets that are reasonably expected to be converted into cash within one year or one operating cycle, whichever is longer. Current assets are listed on the balance sheet in order of liquidity or nearness to cash.
Image of page 15
Image of page 16

You've reached the end of your free preview.

Want to read all 140 pages?

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Stuck? We have tutors online 24/7 who can help you get unstuck.
A+ icon
Ask Expert Tutors You can ask You can ask You can ask (will expire )
Answers in as fast as 15 minutes