ACG2021_ch1 - ACG 2021 Financial Accounting Chapter One:...

Info iconThis preview shows pages 1–12. Sign up to view the full content.

View Full Document Right Arrow Icon
ACG 2021 Financial Accounting Chapter One: The Financial Statements
Background image of page 1

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

View Full DocumentRight Arrow Icon
The Accounting System
Background image of page 2
What is accounting Been in place for hundreds of years 1494 Luca Pacioli's Summa de Arithmetica Geometria Proportionalita (A Review of Arithmetic, Geometry and Proportions) First written description of double-entry accounting Incan khipus cryptic assemblages of string and knots May have been used for record-keeping (i.e. accounting) Gary Urton and Carrie Brezine Annotated Khipu on Flickr System Of recording business transactions Language Whether knots Debits or Credits written in a journal Digital values stored on a computer We’ve been accounting for many, many years
Background image of page 3

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

View Full DocumentRight Arrow Icon
Information System Model
Background image of page 4
The Accounting System An Information System Inputs to the system are business events Sales Purchases Inventory (things to re-sell, things to use in building), buildings – Payroll Processing takes place in the various Journals and General Ledger where transactions are stored Financial Statements are the Outputs and represent Summary Summary Information Income Statement Statement of Retained Earnings Balance Sheet Cash Flows
Background image of page 5

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

View Full DocumentRight Arrow Icon
Accounting Information System Procedures, Techniques and Resources to Relevant Business Information to Interested Users Individuals (Management) Taxing Authorities Non-Profit Organizations
Background image of page 6
Accounting (The Language of Business) Is. .. The process of identifying, measuring, and communicating economic information (via reports) to permit informed judgments and decisions by users of the information. Balance Sheet – Resources Income Statement – Results of Operations Cash Flow – Management of Asset
Background image of page 7

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

View Full DocumentRight Arrow Icon
Language Dialects Financial Accounting Financial Accounting Managerial Accounting Tax Accounting Governmental (non-profit) Accounting
Background image of page 8
ACG 2021 Who are we Accounting for: Business Forms And Accounting Rules and Assumptions
Background image of page 9

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

View Full DocumentRight Arrow Icon
Accounting Assumptions Business activity occurs via distinct entities Sole Proprietorship Partnerships Corporations Business activity is conducted via measurable, observable transactions Transactions can be described using standard units of measurement ($’s) in accounts (Valuation)
Background image of page 10
Forms of Business Organization Proprietorship Has a single owner Proprietor is personally liable for debts of the business Not a separate legal entity For accounting, the proprietorship is a separate entity from the proprietor
Background image of page 11

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

View Full DocumentRight Arrow Icon
Image of page 12
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 38

ACG2021_ch1 - ACG 2021 Financial Accounting Chapter One:...

This preview shows document pages 1 - 12. Sign up to view the full document.

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