After completing this unit, you should be able to:
Define accounting.
Identify the uses of financial information.
Have a basic understanding of creating financial reports
Define assets, liabilities and equity
Explain sources of assets and types of transactions
List the elements of a financial statement.
Learning Objectives
• Group Elements of financial statements into the balance sheet and profit and loss statement
• Record business accounts under the accounting equation
• Classify accounting events into one of the four categories:
o Asset source transactions
o Asset use transactions
o Asset exchange transactions
• Prepare the profit and loss statement and balance sheet statement based on cash accounting
• Differentiate between realization and recognition
• Differentiate between an asset and an expense
• Differentiate between cash and accrual accounting
• Identify cash events and match to the appropriate section of the cash flow statement
• Explain the accounting cycle and the closing process
Objectives:
Using the accounting equation to demonstrate accrual transactions
Describe the steps in the accounting cycle
Learning Objectives – Chapter 6
Internal Control and Accounting for Cash
Accounting for Receivables
Objectives:
1) Explain the allowance method of accounting for bad debt expense
2) Use the percentage of revenue method to estimate bad debt expense
3) Use the direct write off method to estimate bad debt expense
4) Explain how accounting for notes receivable and accrued interest affects financial statements
5) Explain how credit card sales affects the financial statement
Objectives
1) Record and report costs of goods sold and inventory
2) Determine the total costs of inventory
3) Compare and contrast single step and multi step income statement
4) Determine the amount of gross and net sales
1) Use the gross margin method to estimate ending inventory
2) Determine the amount of cost of goods sold and ending inventory using the FIFO, LIFO, weighted average cost flow methods
3) Evaluate the effect of using FIFO, LIFO and weighted average cost flow method on the income statement and balance sheet statement
Objectives:
Objectives:
Show how a notes payable, installment notes, loans and line of credit affects the financial statement