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

Week 2 Notes ACCT 210

by: Megan Spees

Week 2 Notes ACCT 210 ACCT 210-01

Megan Spees
GPA 3.54

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

Hi guys! Heres the notes for Week 2!! I will post a chapter summary for chapter 2 at some point this weekend. Monday at the latest for our QUIZ on TUESDAY!! Good luck and happy studying! As always...
Financial Accounting
John Waters
Class Notes
25 ?




Popular in Financial Accounting

Popular in Business

This 5 page Class Notes was uploaded by Megan Spees on Thursday January 28, 2016. The Class Notes belongs to ACCT 210-01 at University of Indianapolis taught by John Waters in Winter 2016. Since its upload, it has received 41 views. For similar materials see Financial Accounting in Business at University of Indianapolis.


Reviews for Week 2 Notes ACCT 210


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: 01/28/16
Tuesday, January 26, 2016 Financial Accounting Week 2 Notes Chapter 1 Accounting in Business - Importance of Accounting • Identify, record, communicate - Identify: things (anything that affects our #’s) , events, transactions, - Record: General journal; general ledger; record events in chronological order - Communicate: Prepare Financial Statements 1) Income 2) Balance Sheet 3) Statement of cash flows 4) Shareholder Equity Statement - Users of Financial Info - Language of Business—> all organizations use to help people make decisions - External—> lenders, shareholders, governments, consumer groups, external auditors, customers, vendors *Focus for FINACCT - Internal—> officers, managers, internal auditors, sales staff, budget offices, controllers - Anyone internally making decisions for accounting - Opportunities in Accounting - Financial, managerial, taxation, accounting related - Ethics - Beliefs that distinguish right from wrong - Accepted standards of good and bad behavior - Codes of Ethics - Fraud Triangle - 3 Factors must exist: - 1) Opportunity: way to commit fraud without getting caught - 2) Pressure: some pressure to commit EX) Unpaid bills 1 Tuesday, January 26, 2016 - 3) Rationalization: Fails to see criminal nature or justifies - Responsibility for asset, made decisions, record: don’t want to have; prevents fraud—> internal controls - GAAP - Concepts and rules - Make info relevant, reliable and comparable - Relevant: affects decisions of others - Reliable: trusted - Comparable: Make comparisons in contrasting organizations 28 January 2016 - GAAP - Relevant, reliable, comparable - Trust the info if you are going to rely on it - Relevant- about company - Comparable- across organizations or overtime to help people make decisions about their resources - Reliable - Principles and Assumptions of Accounting - General Principles: Basic, long term practices - Specific: Detailed rules from specific events - Accounting Principles - Measurement: info is based on actual cost (objective) - Revenue Recognition: Recognize revenue when earned; proceeds need not be in cash; measure revenue by cash received and cash value of items received - Expense Recognition: Must record expenses incurred to generate the revenue reported 2 Tuesday, January 26, 2016 - Full Disclosure: Report details behind financial statements that would impact users decisions - Accounting Assumptions - Going Concern: Continue operating instead of being closed/sold - Monetary Unit: Express events and transactions in monetary units - Time Period: life of company can be divided into time periods - Business entity: Specific business - Partnership, Proprietorship, & Corporation - 3 Legal Forms of Business Entities - Corporation: what we are looking at in Financial Accounting - SOX - Curb financial abuses at companies that issue their stock to the public - Help with internal controls with oversite - EX) Enron: inflated income, hid debt, bribed officials - Dodd Frank - Accounting Equation - Assets= Liabilities + Equity - Assets= Liabilities + Contributed Capital + Retained Earnings= Liabilities + Common Stock- Dividends + Revenues- Expenses - Financial Statements - In this Order: - 1) Income - 2) Statement of retained earnings - 3) Balance Sheet - 4) Statement of Cash Flows - Return on Assets (ROA) 3 Tuesday, January 26, 2016 - Net Income/Average total assets - How well do I utilize assets? - EX) Bell: above industry average every year - Ratios- equate everything to a relative number - Retrun and Risk Analysis - Lower risk lower expected return - Risk: uncertainty about return - Business Activities - 3 Major Types - 1) Financing Activities - Owner Financing - Non-owner Financing - Financial Management* - 2) Investing Activities - Asset Management: amount and type of assets - Assets: Invested amount - Liabilities: creditors claim - Equity: owners claim - 3) Operating Activities - Strategic Management - Accounting Equation - Assets - Things we own or control - Can be tangible, intangible or contractual - Long (1 year +) or short term - Real or permanent 4 Tuesday, January 26, 2016 - Liabilities - Things we owe - Long term or short term - Real or permanent - Shareholders Equity (SHE) - What we owe to owners - Real or Permanent - Revenue - What we EARN from our business practices - Nominal or temporary account: closed to retained earnings - Expenses - What it cost to earn revenues - Nominal or Temporary 5


Buy Material

Are you sure you want to buy this material for

25 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

Jim McGreen Ohio University

"Knowing I can count on the Elite Notetaker in my class allows me to focus on what the professor is saying instead of just scribbling notes the whole time and falling behind."

Kyle Maynard Purdue

"When you're taking detailed notes and trying to help everyone else out in the class, it really helps you learn and understand the I made $280 on my first study guide!"

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!"

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.