ACC201Exam1ReviewFall09 - ACC 201 Exam#1 Fall 2009 Material...

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Unformatted text preview: ACC 201 Exam #1 Fall 2009 Material Covered Textbook Chapters Chapter 1 Chapter 2 Chapter 3 Chapter 1 Accounting in Business Accounting Activities Users of Accounting Information GAAP and Setting Accounting Principles Principles of Accounting Accounting Equation *Assets = Liabilities + Equity Chapter 1 Accounting in Business Forms of Business Ownership Financial Statements Purpose and What is Included Order of Preparation Chapter 2 Accounting for Transactions & Financial Stmts Asset, Liability & Equity Accounts Expanded Accounting Equation Analyzing and Recording Process Accounts and the General Ledger Debits and Credits & Double Entry Accounting Chapter 2 Accounting for Transactions & Financial Stmts Journalizing and Posting Transactions Financial Statement Preparation Income Statement Statement of Retained Earnings Balance Sheet Steps in the Accounting Process Chapter 2 Exercise Chapter 2 Exercise Solution Chapter 3 Adjusting Entries & Preparing Financial Statements Accounting Period (Timing) Accrual vs. Cash Accounting Deferred Revenues and Expenses Accrued Revenues and Expenses Adjusting Entries that are required Adjusting Accounts An adjusting entry is recorded to bring an asset or liability account balance to its proper amount. Framework for Adjustments Adjustments Paid (or received) cash before expense (or revenue) recognized Paid (or received) cash after expense (or revenue) recognized Prepaid (Deferred) expenses* *including depreciation Unearned (Deferred) revenues Accrued expense Accrued revenues Depreciation Depreciation is the process of computing expense from allocating the cost of plant and equipment over their expected useful lives. StraightLine Asset Cost Salvage Value Depreciation = Useful Life Expense Chapter 3 Review Chapter 3 Adjusting Entries & Preparing Financial Statements Unadjusted Trial Balance, Adjustments & the Adjusted Trial Balance Financial Statement Preparation Order of Statements Accounts Included in Each Statement Temporary vs. Permanent Accounts The Accounting Cycle Start Analyze transactions Journalize Post Prepare unadjusted trial balance Reverse (optional) Prepare postclosing trial balance Close Prepare statements Prepare adjusted trial balance Adjust ...
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