Case 1-2
6/25/13
ACG 6085 – ADVANCED ANALYSIS OF ACCOUNTING DATA
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If you like the reocities.com project you can donate bitcoins to: 1E8rQq9cmv95CrdrLmqaoD6TErUFKok3bF ACG 6085 – ADVANCED ANALYSIS OF ACCOUNTING DATA CLASS NOTES – WEEK 1 – MAY 8, 1999
CHAPTER 1 Need for Information – Many users meet the needs for Managerial Vs. Financial
Managerial – More internal (detailed) Uses future and historical (prepare budgets, forecasts, projections and has no set rules) GAAP – Generally Accepted Account Principles (established by FASB) – Revenues are recorded when earned. Financial Statements - End product of financial accounting process liabilities and equity operations) Accounting Equation – Assets – Liabilities = Equity or Assets = Liabilities + Equity Statement Cash Flows – Credit/Debit Financial – More summarized, more historical (past, recorded) Uses GAAP
Balance sheet (assets = liabilities + Equity) - Balances the company’s assets with it
Current Liabilities – long term (mortgage payable) Short term (1 year) ex. A/P, N/P, Wages Payable, Rent Chapter 2 Money Measurement – Everything measured in terms of $ and cents (common denominator) www.reocities.com/CollegePark/bookstore/3932/index2.htm 1/10
6/25/13
ACG 6085 – ADVANCED ANALYSIS OF ACCOUNTING DATA
Entity Concept – Any activity for which accounting reports are prepared.
Income Statement – Explains how income was earned over a period of time. (result of
RIE – Retained Earnings Statement – Income retained to the next year. Ex. 100,000 in net income, paid 10,000 in income, 90,000 RIE carried over to next year (revenue – expense – dividend) -- Don’t mix and \ match personal and business. Going Concern Concept – Account will continue to operate for an indefinitely long period in the future.
Cost Concept – You maintain the cost of the item. Ex – Land paid $100,000, now worth 1.5 million adhere to cost. You use maintain cost. Dual Aspect
ACG 6085 – ADVANCED ANALYSIS OF ACCOUNTING DATA
tag this page!
HOME
NEIGHBORHOODS
MAKING OF
If you like the reocities.com project you can donate bitcoins to: 1E8rQq9cmv95CrdrLmqaoD6TErUFKok3bF ACG 6085 – ADVANCED ANALYSIS OF ACCOUNTING DATA CLASS NOTES – WEEK 1 – MAY 8, 1999
CHAPTER 1 Need for Information – Many users meet the needs for Managerial Vs. Financial
Managerial – More internal (detailed) Uses future and historical (prepare budgets, forecasts, projections and has no set rules) GAAP – Generally Accepted Account Principles (established by FASB) – Revenues are recorded when earned. Financial Statements - End product of financial accounting process liabilities and equity operations) Accounting Equation – Assets – Liabilities = Equity or Assets = Liabilities + Equity Statement Cash Flows – Credit/Debit Financial – More summarized, more historical (past, recorded) Uses GAAP
Balance sheet (assets = liabilities + Equity) - Balances the company’s assets with it
Current Liabilities – long term (mortgage payable) Short term (1 year) ex. A/P, N/P, Wages Payable, Rent Chapter 2 Money Measurement – Everything measured in terms of $ and cents (common denominator) www.reocities.com/CollegePark/bookstore/3932/index2.htm 1/10
6/25/13
ACG 6085 – ADVANCED ANALYSIS OF ACCOUNTING DATA
Entity Concept – Any activity for which accounting reports are prepared.
Income Statement – Explains how income was earned over a period of time. (result of
RIE – Retained Earnings Statement – Income retained to the next year. Ex. 100,000 in net income, paid 10,000 in income, 90,000 RIE carried over to next year (revenue – expense – dividend) -- Don’t mix and \ match personal and business. Going Concern Concept – Account will continue to operate for an indefinitely long period in the future.
Cost Concept – You maintain the cost of the item. Ex – Land paid $100,000, now worth 1.5 million adhere to cost. You use maintain cost. Dual Aspect