PRINCIPLES OF ACCOUNTING I
PRINCIPLES OF ACCOUNTING I ACCT 2301
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This 4 page Class Notes was uploaded by Felicia Durgan on Thursday October 29, 2015. The Class Notes belongs to ACCT 2301 at University of Texas at Arlington taught by Carly Andrews in Fall. Since its upload, it has received 19 views. For similar materials see /class/231267/acct-2301-university-of-texas-at-arlington in Accounting at University of Texas at Arlington.
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Date Created: 10/29/15
Chapter 2 Outline Classi ed balance sheet 7 Assets Current Assets Longterm investments Property plant and equipment Less Accumulated depreciation Intangible assets Liabilities and Stockholders Eguity Current Liabilities Lon gterm liabilities Stockholders Equity Ratio Analysis 7 expresses the relationship among selected items of nancial statements Ratios can be compared intracompany against industry average or intercompany Pro tability Ratios EPS Liquidity Ratios Working Capital Current Ratio Solvency Ratios Debt to total assets Statement of cash ows and free cash ow Standard Setting bodies GAAP SEC PCAOB FASB IASB Characteristics of Useful information OOWW Assumptions 2 3 4 Principles 2 Constraints 2 Chapter 1 Outline Types of business organizations Sole proprietor single owner who is personally liable Partnership two or more owners who are personally liable Corporation generally many owners who are not personally liable Owners hold shares of stock represented as CS on the corporation s balance sheet Characteristics of a corporation a easy to transfer ownership in sense of buying and selling share b easy to raise funds for owner investment c no personal liability Users and uses of financial information Internal Users a Finance department b Marketing department c Human Resource Department d Management department External Users a investors and creditors b taxing authorities c customers labor unions and regulatory agencies Ethics in financial reporting People won t gamble in a casino if the think it is rigged Likewise people won t play the stock market if they think stock prices are rigged SOX Business Activities a Financing Activities 0 b Investing Activities c Operating Activities The Financial Statements Income Statement Statement of Retained Earnings For the year ended XXXXXX For the vear ended XXXXXX Revenues Beginning RE Expenses Net Income Net Income Dividends Ending Retained Earnings Balance Sheet Statement of Cash ows As of XXXXXX Cash ows from operating activities Assets Liabilities Owners Equity Cash ows from investing activities Cash ows from nancing activities Net increase decrease in cash Cash at the beginning ofthe period Cash at the end of the period