[ACTG 2200] - Midterm Exam Guide - Comprehensive Notes for the exam (29 pages long!)
7 Feb 2017
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Conducting ops: funding, resources, investors, actual business, convert accounting into goods and services, sell to the consumer, make revenues and profit, compensation goes to owners, cycles back into resources/investors. Claims: creditors (borrowing money, owners (getting someone to invest) Ex1: if put in, they buy worth of stock in business. Asset (resource: cash, inventory, accounts receivable, supplies. Dealing with economic events and putting them into a category. Income statement: revenues expenses = net income, assets, liabilities, and equity. Statement of stockholder equity: changes in equity of balances, stock, earnings, and dividends. Statement of cash flows: cash by, operating, investing, financing. Cash always added in or taken out. Don"t use (cid:498)retained earnings(cid:499: incurred owes, earned owed to us. Cash: record events result of cash in/out. Accrual: recording the event before cash is exchanged. Deferral: cash received or paid before the event. Asset: when asset is used up goes into depreciation expense. Deferral: asset, ppd insurance, 12,000, equity.
