ch02 - Financial Statements and Accounting Transactions C H...

Info iconThis preview shows pages 1–10. Sign up to view the full content.

View Full Document Right Arrow Icon
Financial Statements and Accounting Transactions C H A P T E R  2
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Learning Objectives 1. Identify and explain the content and reporting aims of financial statements. 2. Identify, explain and apply accounting principles. 3. Explain and interpret the accounting equation. 4. Analyze business transactions using the accounting equation.
Background image of page 2
Learning Objectives 1. Prepare financial statements from business transactions. 2. Describe the process by which generally accepted accounting principles are established. (Appendix 2A) 3. Assignments:1.Pr2-7A,pg74 2.Pr2-3A,pg71 3.Pr2-4A,pg72
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Communicating Through Financial Statements Accounting provides useful information that helps users make decisions. This information is often provided in the form of financial statements. The major statements are the: Income statement Statement of owner’s equity Balance sheet Statement of cash flows
Background image of page 4
Income Statement The income statement reports: Revenues of the organization. Expenses (costs incurred in earning the revenues). Net income or loss. The income statement covers a period of time.
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Inflows of assets in exchange for products and services provided to customers. Income Statement
Background image of page 6
Income Statement Costs incurred or the using up of assets from generating revenue
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Reports on changes in equity over a period of time. Equity is affected by: Owner investments and withdrawals Net income or net losses Linked to the income statement Statement of Owner’s Equity
Background image of page 8
Covers a period of time. From the
Background image of page 9

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 10
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 48

ch02 - Financial Statements and Accounting Transactions C H...

This preview shows document pages 1 - 10. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online