TAILIEUCHUNG - Lecture Survey of accounting (4/e) - Chapter 1: An introduction to accounting

After you have mastered the material in this chapter, you will be able to: Explain the role of accounting in society; construct an accounting equation using elements of financial statement terminology; record business events in general ledger accounts organized under an accounting equation; classify business events as asset source, use, or exchange transactions; use general ledger account information to prepare four financial statements; record business events using a horizontal financial statements model. | Chapter One An Introduction to Accounting © 2015 McGraw-Hill Education. 1 Role of Accounting in Society Accounting provides information that is useful in answering questions about resource allocation. Should I invest money in IBM or General Motors? 1-2 2 1-3 3 1-4 4 Elements of Financial Statements Assets—Cash, Equipment, Buildings, Land Liabilities Equity Contributed Capital Revenue Expenses Distributions Net Income Gains Losses Subclassifications of the elements are frequently called accounts. Accounts are reported in the financial statements. 1-5 5 Accounting Equation Assets = Liabilities + Equity Assets = Claims Claims on the assets are from two sources: Creditors (liabilities) Investors or owners (equity). 1-6 6 Event 1: RCS (formed on Jan. 1, 2014) acquired cash through $120,000 common stock issue. Increase assets (cash). Increase equity (common stock). Asset Source Transaction Event 2: RCS acquired $400,000 cash by borrowing from a creditor. Increase assets (cash). 2. Increase

• Kế toán - Kiểm toán
• Survey of accounting
• Lecture Survey of accounting
• Accounting for cash
• Accounting cycle
• Financial resources
• Accounting provides information
• Internal controls
• Accounting profession
• Accounting for receivables
• Inventory cost flow
• Accounting for liabilities
• Bonds issued
• Managerial accounting
• Product costing
• Financial statements
• Ledger accounts
• Merchandising businesses
• Transportation costs
• Long term operational assets
• Depreciation method