Chapter 1 - Chapter 1 Class Notes Business Decisions and...

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Let’s start with a simple example. Chapter 1 Class Notes Business Decisions and Financial Accounting Compiled by: Janice H. Fergusson, CPA Certain Materials used with permission of The McGraw-Hill Companies, Inc. Learning Accounting – Think Systematically and Prepare a financial report that compares what Ashley and Jason each own and owe on September 30. What's Owned Jason Ashley Total What's Owed Total Net "Worth"
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ACCT 225 – Fall 2008 Page 2 of 11 Chapter 1 Types of Business Organizations Basic Accounting Equation Sole Proprietorship Partnership Corporation Accounting System Produces Provided to
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ACCT 225 – Fall 2008 Page 3 of 11 Chapter 1 _________________ are resources controlled by the company that have measurable value and are expected to provide future benefits to the company. Examples: __________________________________ _______________________________________________________ _________________ are amounts owed by the business to creditors. Examples: ______________________________________________ ___________________ is the owners' claim to the business resources. Examples: ______________________________________________ Four Basic Financial Statements 1. INCOME STATEMENT – reports how __________________ a company was during _______________________________. 2. STATEMENT OF RETAINED EARNINGS – reports changes in ______________________________ during ___________ _____________________________________. 3. BALANCE SHEET – reports the _____________________ of a company at ___________________________________. 4. STATEMENT OF CASH FLOWS – reports the amount of ____________collected and paid out by a company during ________________________________________________.
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ACCT 225 – Fall 2008 Page 4 of 11 Chapter 1 HEADINGS OF ALL FINANCIAL STATEMENTS: FIRST LINE - Company Name SECOND LINE - Name of Statement (Balance Sheet, Income Statement, Statement of Retained Earnings, Statement of Cash Flows) THIRD LINE - either a specific date (Balance Sheet) or a period of time (Income Statement, Statement of Retained Earnings, Statement of Cash Flows)
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This note was uploaded on 06/06/2011 for the course ACCT 225 taught by Professor Canace during the Spring '08 term at South Carolina.

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Chapter 1 - Chapter 1 Class Notes Business Decisions and...

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