Accounting 1.1

GAAP Concepts

100

 the business is considered separate from its owner or owners

Business Entity

200

When preparing financial statements, it is assumed that the bakery will keep operating and baking bread for many years.

Going Concern

300

divides the life of a business into regular intervals of time, such as months, quarters, or years,

Accounting Period

400

• If the bakery sells bread to a customer on December 15th, but the customer pays on January 10th, the revenue is recorded in December when the sale was made, not in January when the payment was received.

Revenue Recognition

500

What does GAAP stand for?

Generally Accepted Accounting Principles

Accounting Cycle

100

Analyze business transactions to determine debit(s) and credit(s)

Step 1

200

 Prepare a trial balance to prove that debits equal credits

Step 4

300

 Prepare the following financial statements:
            1. Income statement (profit and loss)
            2. Balance sheet

Step 5

400

Journalize and post-closing entries

Step 6

500

Prepare post-closing trial balance

Step 7

Business Structure and Types

100

 business owned and operated by one person

Sole Proprietorship

200

business owned by two or more people

Partnership

300

business that is a separate legal entity from its owners

Corporation

400

 business buys goods and resells them at a profit

Merchandising

500

 business produces goods from raw materials and sells them to customers or other businesses.

Manufacturing

Asset, Liabilities or Owners Equity

100

Cash

Asset

200

Accounts Payable

Liability

300

Accounts Receivable

Asset

400

Owners Capital

Owners Equity

500

Accumulated Depreciation

Owners Equity

About Mr. Walker

100

Where did I grow up

Southern California

200

Favorite Car

1966

300

Sport Played through High School

Baseball

400

College Football Team

BYU

500

Major League Baseball Team

Dodgers