ACC 101-rules(2).docx - ACC 101 Principles of Accounting...

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ACC 101 – Principles of AccountingBasic Accounting Equation: Assets = Liabilities + Owners’ EquityExpanded Accounting Equation:Assets = Liabilities + Owner’s Equity (Capital – Withdrawals + Revenue – Expenses)Financial Accounting provides economic and financial information for investors, creditors, and other external users.Managerial Accounting Managerial accounting provides internal reports to help internal users make decisions about theircompanies. Internal users of accounting information are managers who plan, organize, and run the business.Asset: Anything of value or future value that a company owns as a result of a past transaction. Economic resourcesowned by a company.Ex: Cash, Short Term Investments, Accounts/Notes Receivable, Inventory, Supplies, and Prepaid Assets, Land, Building,Equipment, etc…Liabilities:Obligations to pay cash, transfer assets, or provide services to other entities in the future.Ex: Accounts/Notes Payable, Wages/Salaries Payable, Interest Payable, Unearned Revenue.Owners’ Equity: Owner’s Equity represents the equity stake currently held on the books by a firm's equity investors. It iscalculated as follow: Total Assets – Total Liabilities = Owner’s Equity (Net Assets)Capital: Investment/contribution of assets into the business by owner.

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Term
Summer
Professor
H.Morita
Tags
Balance Sheet, Revenue, Debit, Generally Accepted Accounting Principles

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