Intro to Accounting Notes

Business Environment Accounting: The information system that measures business activities, processes the information Into reports, and communicates the results to decision makers. Two Major Fields of Accounting: 1 ) Financial Accounting: The field of accounting that focuses on providing information for external decision makers. 2) Managerial Accounting: The field of accounting that focuses on providing information for internal decision makers. Certified Public Accountants (Spas): Licensed professional accountants who serve the mineral public.
Certified Management Accountants (Camas): Certified professionals who specialize in accounting and financial management knowledge that typically work for a single company. Financial Accounting Standards Board (FAST): private organization that oversees the creation and governance of accounting standards. Securities and Exchange Commission (SEC): the US government agency that oversees the US financial markets. Generally Accepted Accounting Principles (GAP): the main US accounting rule book, created and governed by the FAST.
Cost Principle: states that acquired assets and services should be recorded at their actual cost. Going Concern Assumption: assumes that the entity will remain in operation for the foreseeable future. Accounting Equation: Assets-Liableness + Equity Assets: an economic resource that is expected to benefit the business in the future. Liabilities: debts that are owed to creditors. Retained Earnings: capital earned by profitable operations off corporation that is not distributed to stockholders. Net Income: the result of operations that occurs when total revenues are greater Han total expenses.

Revenues: amounts earned from delivering goods or services to customers. Expenses: the cost of selling goods or services. Steps to Analyze a Transaction Assets Liabilities + Equity (Contributed Capital & Retained Earnings) Cash + Acts Race + Supplies+Land = Acts Payable + Common Stock – Dividends + Revenue – Expenses 1) Identify the accounts & account type -Cash (Asset) & Common Stock (Equity) 2) Decide if each account increases or decreases 3) Determine if the accounting equation is in balance
Accounts Payable: a short term liability that will be paid in the future Accounts Receivable: business expects to receive cash in the future from customers for goods sold or services performed. 4 Types of Financial Statements 1) Income Statement: Reports net income/net loss of business for specific period 2) Statement of Retained Earnings: Reports how the company’s retained earnings balance changed from the beginning to the end of the period. 3) Balance Sheet: Reports on the assets, liabilities, and stockholders’ equity of the business as of a pacific date. ) Statement of Cash Flows: Reports on the business’s cash receipts and cash payments for a specific period. Return on Assets (ROAR): measures how profitably a company uses its assets. Return on Assets = Net income/Average total assets Average Total Assets = Beginning total assets + ending total assets 12 4 Reasons Stockholders Equity Can Change: Stockholders equity is broken out into two components, contributed capital and retained earnings, as shown in the accounting equation. The basic component of contributed stock capital is stock.

Don't use plagiarized sources. Get Your Custom Essay on
Intro to Accounting Notes
Just from $13/Page
Order Essay
Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Order your essay today and save 20% with the discount code WELCOME