accting 301 study guide 1 min shen

accting 301 study guide 1 min shen - ACCT 301 Fall 2010...

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ACCT 301 – Fall 2010 Study Guide Chapter 1 – Chapter 3 1. Firm (Business) Users of financial statements: outside users and inside users 2. Accounting System Financial accounting: to outside users Management accounting: to inside users The importance of accounting Stock price Management compensation Debt agreements Taxes Regulation Unions Political implications Loss of competitive advantage 3. Standard Setters SEC FASB GAAP: please note FASB is the main body that can set GAAP Audit: Managers are responsible for preparing financial statements. CPAs issue opinions or auditors’ reports: they are responsible for stockholders 4. Four Basic Financial Statements (know the elements of financial statements and several basic equations) Balance Sheet Assets: cash, accounts receivable, inventory, prepaid expenses, property, plant and equipment, land Liabilities: accounts payable, wages payable, interest payable, income tax payable, rent payable, notes payable, long-term debt, unearned revenue Stockholders’ Equity: contributed capital, common stock, preferred stock, retained earnings Assets = Liabilities + Stockholders’ Equity Income Statement Revenue: sales revenue, service revenue, interest revenue, rent revenue
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This note was uploaded on 02/16/2011 for the course ACCOUNTING 301 taught by Professor Chen during the Spring '10 term at George Mason.

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accting 301 study guide 1 min shen - ACCT 301 Fall 2010...

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