ACC231 - Wk 01 - Student Materials

ACC231 - Wk 01 - Student Materials - ACC231 Fall 2009 Week...

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Fall 2009 Copyright © School of Accountancy, Arizona State University Week 1 – Page 1 ACC231 - Fall 2009 Week 1 Overview (August 26 - August 31) Material we cover this week Solid Footing Chapters 1 - 2 What are we learning this week? 1. Purpose of Accounting Information 2. Types of Business Activities 3. Fundamental Accounting Equation 4. Forms of business organizations (or business entities) 5. Accounting Assumptions and Principles 6. Business stakeholders and users of accounting information Detail of Information you should know: 1. Purpose of Accounting Information a. Understand the purpose of accounting information 2. Types of Business Activities a. Identify the three types of business activities 3. Fundamental Accounting Equation (or "Accounting Equation") a. Understand the Accounting Equation b. Differentiate among Assets, Liabilities and Equity c. Understand dual entry accounting (debits / credits) d. Understand T-accounts including debits/credits, "normal balances" and increases/decreases e. Conceptually understand general journal, journal entries, general ledger (and T-accounts), trial balance and Balance Sheet f. Be able to prepare journal entries in the general journal, transfer them to the general ledger (using T-accounts) and prepare a trial balance and Balance Sheet g. Be able to analyze the impact of transactions on the accounting equation (using I, D and NE) 4. Forms of Business Organizations (Entities) a. Identify the three basic forms of business entities b. Understand how these entities differ from each other 5. Accounting Assumptions and Principles a. Period of Time Assumption b. Entity Assumption c. Monetary Unit Assumption d. Going Concern Assumption e. Cost Principle f. Accrual Basis Accounting 6. Business Stakeholders and Users of Accounting Information a. What is a stakeholder? b. Who are the stakeholders in a business and what is their interest in the F/S?
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Fall 2009 Copyright © School of Accountancy, Arizona State University Week 1 – Page 2 WEEK 1 - TERMINOLOGY AND CONCEPTS Items are definitional in nature. We may or may not review these items in Mega but you are responsible for knowing this information for homework, quizzes and exams. The purpose of accounting is to provide information for decision making. This includes providing information that can be used to predict future events (e.g. future financial forecasts) and assess the outcome of prior decisions. Accounting information is useful in investment and credit decisions and in assessing future cash flow. Accounting typically provides information that enables users to learn about economic resources, claims against those resources and changes in these items. Purpose or Role of Accounting
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ACC231 - Wk 01 - Student Materials - ACC231 Fall 2009 Week...

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