Role of Accounting/Ethics
Financial accounting provides _____ users with information
External
Name an asset account
Cash
Account Receivable
Land
Supplies
ETC.
Financial statement should be measured in what unit? (unit of measure concept)
Name an account that affects equity.
Owner's Capital
Owner's Drawing
Revenues
Expenses
Assets = ?
Liabilities + Equity
Managerial Accounting provides _____ users with information, name 1 user.
internal, Managers/Employees
Name a Liability account
Account Payable
First Health is what type of business?
Service
Net income (Loss) = ?
Revenues - Expenses
Assets are 502 and liabilities are 600. What is Equity?
-98
Name 2 external users for financial statements
investors
Creditors/banks
Government
Purchased supplies on account (Element & Account & Increase/Decrease)
Asset - Supplies - increase
Liability - Account payable - increase
Burt's Bees is what type of business?
Manufacturing
What 2 accounts increase owner's equity?
Owner's Investment & Revenues
Assets: 873
Liabilities: 298
If Assets increase by 50 and liabilities decrease by 18 - what is equity?
643
True/False: Bankruptcy is the only consequence of unethical handling of financial statements.
False: Executives plead guilty, large fines
We paid $500 to company B for what we had on account. (Element - Account - Increase/Decrease)
Liability - Account Payable - Decrease
A warehouse was listed at 140,000. The first company was 120,000. A second company offered 125,000 and a third company swooped in at the last minute 129,000. The third seller overpaid since it was appraised at 112,000. For what price would the third buyer record the purchase of the warehouse?
129,000
Beginning Equity: 220,000
Investment: 40,000
Ending Equity: 275,000
What is Net income (net loss)?
Net income 15,000
What does GAAP stand for?
Generally Accepted Accounting Principles, created by Financial Account Standards Board (FASB)
Certification required for public accounting
CPA: Certified Public Accountant
We collected $450 for past revenue that was on account (Element - Account - Incease/Decrease)
Asset - Cash - increase
Asset - Account Receivable - decrease
About what % of businesses are proprietorships?
70%
Beginning equity: 343,000
withdrawal: 12,000
investment: 40,000
Ending Equity: 345,000
What is Net income (Net Loss)?
Net loss 26,000
What does IFRS stand for?
International Financial Reporting Standards created by International Accounting Standards Board (IASB)