管理会计c-h16.pptVIP

Chapter 16 Basic Accounting: Concepts, Techniques, and Conventions Learning Objective 1 The Need for Accounting The Need for Accounting Business Transactions Balance Sheet The balance sheet (also called statement of financial position or statement of financial condition) is a snapshot of the financial status of an organization at a point in time. Balance Sheet Balance Sheet Equation Balance Sheet Accounts Balance Sheet Accounts Learning Objective 2 King Hardware Transactions Initial investment by owners, $100,000 cash. Acquisition of inventory for $75,000 cash. Acquisition of inventory for $35,000 on open account. Merchandise costing $100,000 was sold on open account for $120,000. King Hardware Transactions King Hardware Transactions Cash collections of accounts receivable, $30,000. Cash payments of accounts payable, $10,000. On March 1, paid $3,000 cash for rent for March, April, and May. Rent is $1,000 per month. King Hardware Transactions Revenues Expenses Profits Income Statement Income Statement The Analytical Power of theBalance Sheet Equation The Analytical Power of theBalance Sheet Equation Learning Objective 3 Accrual Basis versus Cash Basis Accrual Basis versus Cash Basis Learning Objective 4 Adjustments Under the accrual basis of accounting, adjustments are used to record implicit transactions, in contrast to the explicit transactions that trigger nearly all day-to-day routine entries. Adjustments are generally prepared by the accountant at month or year end. Types of Adjustments Depreciation Learning Objective 5 Dividends Retained Income Learning Objective 6 King Hardware Company King Hardware Company King Hardware Company King Hardware Company Learning Objective 7 Sole Proprietorship/Partnership Comparison of Owners’ Equity Reporting Comparison of Owners’ Equity Reporting Comparison of Owners’ Equity Reporting Generally Accepted Accounting Principles (GAAP) Audit Financial Accounting Standards Board (FASB) The Financial Accounting Standards B