ACCT 200 Study Guide - Fall 2018, Comprehensive Midterm Notes - Standard Accounting Practice, Personal Protective Equipment, Income Statement
12 Oct 2018
School
Department
Course
Professor
ACCT 200
MIDTERM EXAM
STUDY GUIDE
Fall 2018
1
Lecture
January 11 Chapter 1
- focus for class is corporations
- to be an owner of a corporation you have to buy stocks, makes it easy to transfer ownership by
selling shares
- not personally liable in a corporation, personal protection “corporate shield”
- SP has individual income taxed so income is only taxed one, but corporations are basically
taxed twice, owners are taxed then dividends to shareholders are taxed again
- internal users: marketing, managers, human resources, finance
- external users: investors, creditors
- creditor: party loaning money to a business
- The accounting information system keeps track of the results of each of investing,
financing, and operating activities
- liabilities (future obligation) — amounts owed
- payable — liability
- if you purchase stick you hope to get back dividends (returns on stock purchase)
- Financing activities: 1. debt financing (loan) and 2. equity financing (stock)
- PPE Property, Plant, and Equipment: computers, delivery trucks, etc.
- financing is your own stock, investing is others stock
- investments: investing in a business through stocks
- inventory: goods available for sale to customers
- Accounts receivable: Right to receive money from a customer
as the result of a sale (asset)
find more resources at oneclass.com
find more resources at oneclass.com
2
- biggest expense is usually wages (employees hired)
- Common Stock is the term used to describe the amount paid by stockholders for shares they
purchase
January 16 Chapter 2
- Past net income provides information for predicting future net income
- Income Statement
- Net income is needed to determine the ending balance in retained earnings
- Retained Earnings
Statement
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
To be an owner of a corporation you have to buy stocks, makes it easy to transfer ownership by selling shares. Not personally liable in a corporation, personal protection corporate shield . Sp has individual income taxed so income is only taxed one, but corporations are basically taxed twice, owners are taxed then dividends to shareholders are taxed again. Internal users: marketing, managers, human resources, finance. Creditor: party loaning money to a business. The accounting information system keeps track of the results of each of investing, financing, and operating activities. If you purchase stick you hope to get back dividends (returns on stock purchase) Financing activities: 1. debt financing (loan) and 2. equity financing (stock) Ppe property, plant, and equipment: computers, delivery trucks, etc. Financing is your own stock, investing is others stock. Investments: investing in a business through stocks. Inventory: goods available for sale to customers.
