Syllabus
What format is our Accounting 4A class in?
HyFlex format
Who does financial accounting provide information for?
External decision makers such as:
Investors who own a portion of the business
Creditors to whom the business owes money
Taxing authorities, to whom the business owes taxes.
(Lecture 1, slide 8)
Who does managerial accounting provide information for?
Internal decision makers, such as:
Managers, employees, individuals, businesses
(Lecture 1, slide 8)
What does the Financial Accounting Standards Board (FASB) do?
It oversees creation and governance of accounting standards
(Lecture 1, slide 12)
What is the function of the Securities and Exchange Commission (SEC)?
It oversees the U.S. financial markets
(Lecture 1, slide 12)
What is the difference between the final exam and the other three exams in this class?
It is required in order to pass the course; your score cannot be dropped.
It is worth 225 points instead of 75 points.
It is a comprehensive exam
What type of accounting would a decision maker need to analyze to answer the following question:
"Should we lend money to the business?"
Financial accounting
(Lecture 1, slide 7)
What type of accounting would a decision maker need to analyze to answer the following question:
"Should the business expand to a new location?"
Managerial accounting
(Lecture 1, slide 7)
What is required in order for accounting information to be considered useful?
It must be relevant, so that it can be used to make a decision
It must have faithful representation by being complete, neutral, and free from error
(Lecture 1, slide 13)
Can you describe the economic entity assumption and give an example of an economic entity?
An organization that stands apart as a separate economic unit follows the economic entity assumption.
Sole proprietorship; partnership; corporation; LLC
(Lecture 1, slide 14)
What is the benefit of using Top Hat in conjunction with lectures?
It helps Professor Valdez gauge student understanding of the topics;
It helps students remain engaged and interested in the class;
It provides students with the opportunity to gain bonus points!
Why is accounting important?
Accounting is important because it is the information system that measures business activities, processes the information into reports, and communicates the results to decision makers. (Lecture 1, slide 5)
Can you explain the significance of the Pathways Vision Model?
It "emphasizes that good decisions have an impact on accounting judgements and economic activity, thus creating a circular flow of cause and effect" and that "accountants play a critical role in supporting a prosperous society" (1.1 Exhibit F:1-1)
What are some differences between a sole proprietorship and a partnership?
A sole proprietorship has only one owner, whereas a partnerships has two or more.
In a sole proprietorship, the owner pays tax on the proprietorship's earnings, while in a partnership the owners pay tax on their share of the earnings.
The responsibilities and authorities are shared in a partnership.
Sole proprietorships are usually small businesses. Partnerships are often professional organizations, such as of physicians, attorneys, and accountants.
(Lecture 1, slide 16)
Can you describe the structure of a corporation?
Stockholders
Board of directors
Chairperson of the Board
Predisent
Vice presidents