New User Special Price Expires in

Let's log you in.

Sign in with Facebook


Don't have a StudySoup account? Create one here!


Create a StudySoup account

Be part of our community, it's free to join!

Sign up with Facebook


Create your account
By creating an account you agree to StudySoup's terms and conditions and privacy policy

Already have a StudySoup account? Login here

Exam 1 Study Guide

by: Cheyenne Hunt

Exam 1 Study Guide ACCT 2110 - 002

Cheyenne Hunt
GPA 3.33

Preview These Notes for FREE

Get a free preview of these Notes, just enter your email below.

Unlock Preview
Unlock Preview

Preview these materials now for free

Why put in your email? Get access to more of this material and other relevant free materials for your school

View Preview

About this Document

These notes cover what is going to be on the first exam.
Principles of Financial Accounting
Elizabeth Miller
Study Guide
Accounting, Principles, financial
50 ?




Popular in Principles of Financial Accounting

Popular in Accounting

This 3 page Study Guide was uploaded by Cheyenne Hunt on Sunday January 31, 2016. The Study Guide belongs to ACCT 2110 - 002 at Auburn University taught by Elizabeth Miller in Winter 2016. Since its upload, it has received 43 views. For similar materials see Principles of Financial Accounting in Accounting at Auburn University.


Reviews for Exam 1 Study Guide


Report this Material


What is Karma?


Karma is the currency of StudySoup.

You can buy or earn more Karma at anytime and redeem it for class notes, study guides, flashcards, and more!

Date Created: 01/31/16
Exam 1 Study Guide Sole Proprietorship  One controlled owner; easily formed; tax advantages; personal liability; limited life Partnership  Multiple shared control owners ; more human capital resources; tax advantages; personal liability; limited life Corporation  Easier to raise money; easier to transfer ownership; limited liability; more complex to organize; higher taxes Balance Sheet Reports assets, liabilities, and stockholders’ equity Current assets- cash, account receivables, short-term investments, inventories, supplies, prepaid expenses, etc.; assets expected to be converted into cash within one year Noncurrent assets- long-term investments and other deferred charges that will take longer than one year to convert into cash Current liabilities- accounts payable, salaries payable, etc.; obligations that will be satisfied within one year Long-term liabilities and stockholders’ equity- notes payable, bonds payable, common stock, retained earnings, etc.; obligations that will be satisfied beyond one year Income Statement  Reports revenues, expenses, and net income or net loss  Revenue- cash earned by the company from sales and other sources within a year  Expense- cash paid by the company, mostly due to operations, within a year  Single-step or multiple-step Retained Earnings Statement  Reports retained earnings and how much was distributed in dividends  Beginning RE ± Net Income/Loss – Dividends= Ending RE Statement of Cash Flow  Reports the sources and uses of a company’s cash over a period of time GAAP Generally accepted accounting principles SEC Securities and Exchange Commission Has the power to set accounting rules for publicly traded companies FASB  Financial Accounting Standards Board  The primary accounting standard setter in the United States IASB International Accounting Standards Board IFRS International financial reporting standards Financial Accounting Equation  Assets= Liabilities + Stockholders’ Equity Qualitative Characteristics of Accounting Information  Relevance- capable of making a difference in a business decision  Faithful representation- accurately represents the real world  Comparability- allows external users to identify similarities and differences between items  Timeliness- available to users before it loses its ability to influence decisions  Understandability- users who have a reasonable knowledge of accounting and business can, with reasonable study effort, comprehend the meaning of the information  Verifiability- independent parties can agree on the measurement of the activity Assumptions of Accounting Information  Economic entity- each company is accounted for separately from its owners  Continuity- going concern; a company will continue to operate long enough to carry out its existing commitments  Time period- life of a company to be divided into official time periods  Monetary unit assumption- account for and report its financial results in monetary-terms Principles of Accounting Information  Historical Cost- the activities of a company to be initially measured at their cost  Revenue recognition- earned when goods or services are provided to customers  Expense recognition- matching; in the same period as the revenue that it helped generate, expenses are recorded Conservatism- accounts should avoid overstating assets or income The Accounting Cycle  Step 1: Analyzing transactions o Write down the accounting equation o Identify the financial statement elements that are affected by the transaction o Determine whether the elements increased or decreased  Step 2: Journalize transactions o The date of the transaction o The accounts and amounts to be increased or decreased o A brief explanation of the transaction


Buy Material

Are you sure you want to buy this material for

50 Karma

Buy Material

BOOM! Enjoy Your Free Notes!

We've added these Notes to your profile, click here to view them now.


You're already Subscribed!

Looks like you've already subscribed to StudySoup, you won't need to purchase another subscription to get this material. To access this material simply click 'View Full Document'

Why people love StudySoup

Bentley McCaw University of Florida

"I was shooting for a perfect 4.0 GPA this semester. Having StudySoup as a study aid was critical to helping me achieve my goal...and I nailed it!"

Allison Fischer University of Alabama

"I signed up to be an Elite Notetaker with 2 of my sorority sisters this semester. We just posted our notes weekly and were each making over $600 per month. I LOVE StudySoup!"

Steve Martinelli UC Los Angeles

"There's no way I would have passed my Organic Chemistry class this semester without the notes and study guides I got from StudySoup."

Parker Thompson 500 Startups

"It's a great way for students to improve their educational experience and it seemed like a product that everybody wants, so all the people participating are winning."

Become an Elite Notetaker and start selling your notes online!

Refund Policy


All subscriptions to StudySoup are paid in full at the time of subscribing. To change your credit card information or to cancel your subscription, go to "Edit Settings". All credit card information will be available there. If you should decide to cancel your subscription, it will continue to be valid until the next payment period, as all payments for the current period were made in advance. For special circumstances, please email


StudySoup has more than 1 million course-specific study resources to help students study smarter. If you’re having trouble finding what you’re looking for, our customer support team can help you find what you need! Feel free to contact them here:

Recurring Subscriptions: If you have canceled your recurring subscription on the day of renewal and have not downloaded any documents, you may request a refund by submitting an email to

Satisfaction Guarantee: If you’re not satisfied with your subscription, you can contact us for further help. Contact must be made within 3 business days of your subscription purchase and your refund request will be subject for review.

Please Note: Refunds can never be provided more than 30 days after the initial purchase date regardless of your activity on the site.