[ACC 2101] - Final Exam Guide - Ultimate 111 pages long Study Guide!
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Employee stock ownership plan (esop) gi(cid:448)es e(cid:373)ployee 20% of a (cid:272)o(cid:373)pa(cid:374)y"s sto(cid:272)k. Bala(cid:374)(cid:272)e heet: (cid:374)apshot of (cid:272)o(cid:373)pa(cid:374)y"s (cid:272)urre(cid:374)t financial position. Whe(cid:374) (cid:449)orki(cid:374)g (cid:272)apital is positi(cid:448)e, it (cid:373)ea(cid:374)s there"s a greater a(cid:271)ility to pay off it"s obligations. Economic entity assumption every economic entity can be separately identified a(cid:374)d a(cid:272)(cid:272)ou(cid:374)ted for. Definition accounting transaction occurs when assets, liabilities, or sto(cid:272)kholde(cid:396)"s equity items change as a result of some economic event. Assets o(cid:374) the left = i(cid:374)(cid:272)(cid:396)ease asset, de(cid:272)(cid:396)ease lia(cid:271)ilit(cid:455), de(cid:272)(cid:396)ease sto(cid:272)kholde(cid:396)"s e(cid:395)uit(cid:455) General ledger co(cid:374)tai(cid:374)s asset, lia(cid:271)ilit(cid:455), sto(cid:272)kholde(cid:396)"s e(cid:395)uit(cid:455), (cid:396)eve(cid:374)ue, a(cid:374)d e(cid:454)pe(cid:374)se accounts. Accrual basis accounting the tra(cid:374)sactio(cid:374)s that cha(cid:374)ge a co(cid:373)pa(cid:374)y"s fi(cid:374)a(cid:374)cial state(cid:373)e(cid:374)ts are recorded in the periods in which the event occurs, even if cash was not exchanged. Learning objective 1: describe merchandising operations and inventory systems. Merchandising companies buy and sell merchandise rather than perform services as their primary source of revenue. Wholesalers merchandising companies that sell to retailers. Two categories of expenses: cost of goods sold.
