Chapter 1 Re-cap

Let's Talk About SETS

100

This asset is received when services are earned or in exchange for common stock

Cash 

200

This asset has a future expiration date 

Prepaid Expenses 

300

I promise you it is not a liability 

LAND -_-

400

These are promises to pay me in the future 

Accounts Receivable 

500

100 Markers

50 packs of paper

25 Highlighters

Supplies 

You May Now Make Your Closing Statements

100

Balance Sheet

Income Statement

Statement of Stockholders Equity

Statement of Cash Flows

4 Basic Financial Statements

200

This reports inflows and outflows of cash during the accounting period 

Statement of Cash Flows 

300

This reports the accountant's primary measure of performance of a business, revenues less expenses during the accounting period 

Income Statement 

400

This statement reports the way that net income and the distribution of dividend affected the financial position of the company during the accounting period 

Statement of Stockholders Equity 

500

This reports the amount of assets, liabilities, and stockholder's equity of an entity at a point in time 

Balance Sheet 

This is the End... Users

100

I review your financial statements to gain info about these same business activities to assess whether the company will be able to pay back it debts 

Creditors 

200

"I NEED MONEY" 

"Me too!"

   Then we started getting it together.

I am looking at your financials to see if you will be able to pay dividends 

Stockholders 

300

I think it's time to close the photo gallery... it's not making us any money! 

Managers

400

I am reviewing the financial statements to make informed business decisions as it pertains to management of the company

Internal End User 

500

From the outside looking in... I want to know if I should buy stock in this company 

External End-Users

Somebody Grab The Textbook

100

This indicates the amount of financing provided by creditors- amounts owed to suppliers, employees, and banks

Accounts Payable

200

This indicates the amount of financing provided by owners of the business and reinvested earnings 

Stockholders Equity 

300

This is cash and promises received from delivery of goods and services 

Revenue 

400

These are resources used to earn period's revenue 

Expenses 

500

This system is used for external decision makers and produces the 4 basic financial statements and related disclosures

Financial Accounting 

It All adds Up

100

Liabilities = 174,010

SE = 543,770

Assets = ?

$717,780

200

Assets= 87,000

SE = 27,190

Liabilities = ? 

$59,810

300

Fees Earned = 481,000

Wages expense = 334,000

Rent expense = 37,000

Supplies expense = 3,800

Net Income (Loss) = 

$106,200

400

Assets = Liabilities + Stockholders Equity

The Accounting Equation

500

A/P = 108,000          A/R = 539,000

Common Stock = 575,000       Land = 1,500,000

Supplies = 6,000      Prepaid Expenses = 200,000

What is total amount for assets? 

$2,245,000