An accounting method that measures the performance and position of a company by recognizing
economic events regardless of when cash transactions occur.
- The general idea is that economic events are recognized by matching revenues to
Assets = Liabilities + Equity
recognize revenue and expenses as transaction occurs
what you have
examination of financial statement by 3rd party to express opinion on it
FIFO versus LIFO Notes:
FIFO and LIFO accounting methods are used for determining the value of unsold inventory, the
cost of goods sold and other transactions like stock repurchases that need to be reported at the
end of the accounting period. FIFO stands
an organization in which basic resources (inputs), such as
materials and labor, are assembled and processed to provide goods or services
(outputs) to customers. The objective is to make a profit.
the difference between the amounts received
Bowling Green State University
ACCT 2000 Accounting Concepts for Nonbusiness Students
Alisa K. Suelzer, CPA, MBA
419-372-2767 (Accounting and MIS,
long term or relatively permanent asset such as equipment, machinery, buildings, and land.
they exist physically and thus are tangible
they are owned and used by the company in its normal operations
Expense that have been incurred at the end of an accounting period.
Revenues that have been earned at the end of an accounting period but have not been
recorded in the accounts.
Accrual Basis of Accounting
A system of acc
An information system that provides reports to stakeholders about the economic activities and
condition of a business.
Assets = Liabilities + Stockholders' Equity
Accounting period concept
An accounting concept in which acco
The analysis that details the items responsible for thedifference between the cash balance
reported in the bank statement and the cashbalance in the ledger.
A summary of all transactions mailed to the depositor by the ba
accounts receivable analysis
the analysis of a company's ability to collect its accounts receievable.
Accounts receivable turnover
the relationship between net sales and accounts receivable computed by dividing the net sales by
the average net accounts re
What is Premium Pricing Strategy?
Premium pricing a strategy used to market products has a high value.
Pricing is a major element of marketing any product, and it is vitally important to set the right
price. A price that is too high or too low for the tar
Bank Reconciliation Step Notes:
The procedures in preparing bank reconciliation are concisely presented as follows:
Determine the balance per book and the balance per bank.
Trace the cash receipts to the bank statement to ascertain whether there are dep
Interest Expense: 200 ($60,000 4% 30/360 = $200
Demo Problem Completed in Class
Demo Problem #2 Solution Handout in Class
POLARIS REALTY INC.
For the Month Ending November 30, 2011
Demonstration/Review Problem Chapter 3
Bill Sanders started a part-time consulting practice, Sanders Consulting Associates
(SCA), on January 1, 2012. SCA experienced the following transactions during 2012.
Acquired $3,000 cash from issuing com