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

Management 1A Chapter 2 Notes

by: Daniel Ochs

Management 1A Chapter 2 Notes Management 1A

Daniel Ochs

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

Chapter 2 notes
Principles of Accounting
D.S. Litt
Class Notes
Management, Accounting
25 ?




Popular in Principles of Accounting

Popular in Business, management

This 3 page Class Notes was uploaded by Daniel Ochs on Monday April 11, 2016. The Class Notes belongs to Management 1A at University of California - Los Angeles taught by D.S. Litt in Spring 2016. Since its upload, it has received 28 views. For similar materials see Principles of Accounting in Business, management at University of California - Los Angeles.


Reviews for Management 1A Chapter 2 Notes


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: 04/11/16
Monday, April 11, 2016 Management 1A Chapter 2 [Course Reader: Page 75 - Page 116] - Basic Accounting Equation: Assets = Liabilities + Owner’s Equity • Assets are resources owned by a business. Things of value for production or exchange • Liabilities are claims against assets. Existing debts and obligations - Accrual Basis of Accounting: realistic picture of profit performance - Cash Basis of Accounting: unrealistic picture of profitability, ignores uncollected revenue - Financial Statements: present revenue and expenses and resulting net income of a company over a specific time frame - Account: an individual accounting record of increases and decreases in a specific asset, liability, or owner’s equity item • Title (of the account) Debit [DR] (left side / Assets) + • - Increase in assets, Decrease in liabilities or equities • Credit [CR] (right side / Liabilities + Owner’s Equity) - - Decrease in assets, Increase in liabilities and equities • Debits must equal Credits - Journal Entry Example and Debit / Credit Diagram (T-accounts) [Page 79-81] - Acronym DEALER [Page 80] - Debit / Credit Summary [Page 83] - Recording Process • Analyze each transaction, Enter transaction information, Transfer to general ledger - General Ledger • Contains all assets, liabilities, and owner’s equity accounts 1 Monday, April 11, 2016 • Posting: procedure of transferring journal entries to the general ledger accounts • Chart of accounts: lists the accounts like a table of contents - Trial Balance: list of accounts and their running balances at a given time - Basic Financial Statements • Income Statement: net income or net loss • Net Income = Revenues - Expenses Permanent accounts: remain on the books after closing at year-end • - Assets, Liabilities, Owner’s Equity, Capital Stock, Retained Earnings • Temporary or nominal accounts: are zeroed out at year-end - Revenue, Expenses, Drawings / Dividends - Balance Sheet: reports assets, liabilities, and owner’s equity at end of the period • Must balance (assets = liabilities + owner’s equity) - Assets: economic resources owned by the company that are expected to provide future economic benefit • Cash, Stocks & Bonds, Amounts owed to a company, Merchandise Inventory, Supplies, Prepaid Expenses, Fixed Assets - Liabilities: amount owned by the company • Payables (accounts, taxes, notes, unearned revenue), Bonds, Loans - Equity: excess of total assets over total liabilities • Changes in equity examples: - Contributed Capital —> Additional Investments - Withdrawals (Drawings) —> Return of Investment - Revenue & Expenses • Equity = Assets - Liabilities - Ending Equity = Beginning Equity + Revenue - Expenses + Contributed Capital - Drawings - Statement of Cash Flows [Page 95] 2 Monday, April 11, 2016 • Operating Activities: cash receipts from revenues and cash payments of expenses • Investing Activities: cash flows from the purchase and sale of assets that the business expects to use for a long time • Financing Activities: receipts and payments from people who finance the business (investors and creditors) - Accounting Cycle [Page 97] - Creating Financial Statements • Each statements has: (1) Name of the Company, (2) Name of the Statement (3) Date • Period Statement: cover a specific period of time - Includes: Income Statement, Cash Flow Statement, Statement of Owner’s Equity • Position Statements: are as of a specific in time - Includes: Balance Sheet 3


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

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."

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!"


"Their 'Elite Notetakers' are making over $1,200/month in sales by creating high quality content that helps their classmates in a time of need."

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.