Acct Chap 1 - Chapter 1 Accounting as a Form of...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Chapter 1 Accounting as a Form of Communication
Background image of page 1

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

View Full DocumentRight Arrow Icon
2 What is Accounting? Identifying Measuring Communicating Financial Information to users for decision making
Background image of page 2
3 What do Financial Accountants do? Track information Use a system based on ACCOUNTING EQUATION Communicate information through financial statements Balance Sheet Income Statement Retained Earnings Statement Cash Flow Statement (more on this later)
Background image of page 3

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

View Full DocumentRight Arrow Icon
4 The Accounting Equation Assets = Liabilities + Owners’ Equity (or Stockholders' Equity) Creditors' Claims to Assets Owners' Claims to Assets Economic Resources = + Examples: Cash Accounts receivable Inventory Accounts payable Notes payable Capital stock Retained earnings
Background image of page 4
5 Balance Sheet Assets Liabilities Owners’ Equity (or Stockholders' Equity) = + A FEDERAL RESERVE NOTE THE UNITED STATES OF AMERICA THE UNITED STATES OF AMERICA L7074 629F 12 12 12 12 L7074 629F ONE DOLLAR ONE DOLLAR Stock Certificate - snapshot of financial position
Background image of page 5

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

View Full DocumentRight Arrow Icon
6 Income Statement (simplified) Revenues $$$ Less: Expenses ($$) Net income $$
Background image of page 6
Statement of Retained Earnings Beginning retained earnings $$$ Add: Net income for the period $$ Deduct: Dividends for the period ($$) = Ending retained earnings $$$ 7
Background image of page 7

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

View Full DocumentRight Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/27/2010 for the course FIN 311 taught by Professor Haan during the Spring '10 term at St. Josephs NY.

Page1 / 22

Acct Chap 1 - Chapter 1 Accounting as a Form of...

This preview shows document pages 1 - 8. Sign up to view the full document.

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