Chapter 5 Merchandising Operation
What are Merchandising Operation?
Accounting for merchandisers.
Merchandiser- a business that sells merchandise, or goods to customers.
- The merchandise that this type of business sells is called merchandise inventory.
Chapter 2- Recording Business Transactions
Account- Detailed record of all increases and decreases that have occurred in an individual asset,
liability or equity during a specific period.
Assets - Economics resources that are expected to benefit the busin
How do we prepare financial statements?
Financial Statements are made from adjusted trial balance.
1. Income Statement: reports revenues and expenses and calculates net income or net loss
for the time period.
2. Statement of owners equity- shows
Chapter 3- The Adjusting Process
Cash Basis Accounting and Accrual Basis Accounting
Cash Basis Accounting- Accounting method that records revenues only when cash is received
and expenses only when cash is paid.
- Only records transactions with cash.
- States that business should use the same accounting methods and procedures from period
- Makes things with consistency to help investors and creditors.
- Hold that a company sho
Chapter 1- Accounting and the Business Environment
Accounting- Information system that measures business activities, processes the information
into reports and communicates the information to decision makers.
- Financial Accounting- Information provided f
Chapter 7 Accounting Information System
Accounting Information Systems- A system that collects, records, stores and processes
accounting data to produce information that is useful for decision makers.
- Business must have a way to collect and store data f
Chapter 13 Corporations: Effects on Retained Earnings and The Income Statement
- Stock Dividends, - Stock Splits, - Treasury Stock, - Corporate Income Statement
STOCK DIVIDENDS: Is a distribution of a corporations own stock to its shareholders. Its distri
Chapter 11 Long-Term Liabilities, Bonds Payable, and Classification of Liabilities
on the Balance Sheet
Common Long-Term Liabilities are Long-Term Notes Payable and Mortgages Payable:
Long-Term Notes Payable: The Reclassification of Long-Term debt to curr
Financial Account 1B Chapter 12 Corporations: Paid-In Capital and the Balance Sheet
Authorization of Stock: Authorization is the states permission for the corporation to operate.
Stock Certificates: A corporation issues stock certificates to the stockhold
Financial Accounting 1B - Chapter 15 Financial Statement Analysis
QRAT CSN L
Most Financial Statements cover at least 2 periods. In fact, most financial analysis covers trends of 3 to 5
Financial Accounting 1A Chapter 5 Merchandising Operations
Merchandising: Consists of buying and selling products rather than services.
Financial Statements of a Service Company and a Merchandising Company: Merchandising companies
have one additional acco
Financial Accounting 1A Chapter 9 Plant Assets & Intangibles
Plant Assets: Are referred to as Property, Plant, and Equipment. ALSO:
Plant Assets are relatively expensive.
The full cost invested in plant assets can be a challenge to determine because of th
THE ACCOUNTING CYCLE JP TAAF CP JAPAN TAAFFY CHRIS PAUL
(JPTAAFCP) JP TAAF CP:Japan Taaffy Chris Paul
1) Analyze and Journalized transactions as they occur. (JOURNALIZE TRANSACTIONS)
2) Post to the account. (POST) to ledger
3) Compute the unadjusted balan
Chapter 8 - Receivables
Accounts Receivables are recorded below. The reason WHY it is NOT recorded as UNEARNED REVENUE
and treated as a liability is because it HAS BEEN EARNED, since the SERVICE or PRODUCT has already
been delivered. IF it had not been de
Financial Accounting 1A - Chapter 6 Merchandise Inventory
Inventory is one of the 1st areas in which you must pick the accounting method you will use.
Accounting Principles and Inventories: Several accounting principles affect inventories. Among them are
Financial Accounting 1A Chapter 1 NOTES Accounting and the Business Environment
Information System: An information system is any organized system for the Collection, Organization,
Storage and Communication of information.
(More specifically, it is the stu
Chapter 4 Completing the Accounting Cycle
The Accounting Cycle: Is the process by which companies produce their financial statements.
1) Start with beginning account balances.
2) Analyze and journalize transactions as they occur.
3) Post to the accounts
Financial Accounting 1A Chapter 3 The Adjusting Process
Accrual Accounting VS Cash-Basis Accounting:
Accrual Accounting: Records the effect of each transaction as it occursthat is, revenues are recorded
when earned and expenses are recorded when incurred.
Financial Accounting 1A Chapter 2 NOTES Recording Business Transactions
The Account, The Journal, and the Ledger:
Account: Is the detailed record of all the changes that have occurred in an individual asset, liability, or
owners equity (or stockholders eq
Name of Business
Statement of Cash Flows
Year Ended (Date) December 31st, 2014
Cash Flows from Operating Activities:
Adjustments to Reconcile Net income to net cash provided by operating Activities:
+Depreciation / Amortization Expense
Type of Accounts in Accounting (FOR EACH CHAPTER)
Chapter 10 Current Liabilities and Payroll
Current Liabilities of Known Amount: Liabilities due within 1 year or the entitys operating cycle.
Accounts Payable: Amounts owed for products or services purchased on account are accounts payable.
Since these ar
Financial Accounting 1C Chapter 16 Introduction to Managerial Accounting
Management Accountability: Financial vs. Managerial Accounting:
Management Accountability: Is the managers responsibility to the various stakeholders of the company.
ACCTG 1B Chapter 14 NOTES The Statement of Cash Flows
The Statement of Cash Flows: The statement of cash flows reports cash flowscash receipts and cash
1) Shows WHERE cash came from (receipts) and HOW cash was spent (payments).
2) Reports wh
Financial Accounting 1A Chapter 7 NOTES Internal Control and Cash
Internal Control: Is the organizational plan and all the related measures designed to accomplish the
following: (Preventing Waste, Illegal Activities, Inefficiency, Thef) (WAIT)