Limited Liability Proprietorship Partnership Corporation × × √ One owner allowed √ × √
Accounting Equation
Assets = Liabilities + Equity Be proficient in 11 transactions from P11~13 Be proficient in 3 statements Income statement, Statement of Owner’s Equity & Balance Sheet
Accounting Байду номын сангаасrocess
1. 2. 3. 4. 5. 6. 7. Source documents Journal Ledger Adjusting Adjusted trial balance Statements Closing
Adjusting
*Depreciation
Dr. Depreciation Expenses; Cr. Accumulated Depreciation Accumulated Depreciation is a contra account
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Principles of Accounting 19 Edition
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Sam.J @ NJAudit
Chapter 2 Analyzing and Recording Transactions Chapter 3 Adjusting Accounts and Preparing Financial Statements Chatper 4 Completing the Accounting Cycle
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Four assumptions
Going concern Monetary unit Time period Business entity
Four principles
Cost Matching Revenue recognition Full disclosure
Business entity
Principles of Accounting 19 Edition
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Sam.J @ NJAudit
Chapter 1 Accounting in Business
Users of Acc. Information
External users: creditors & investors Internal users Know the difference between FINICIAL ACCOUNTING & MANAGERIAL ACCOUNTING
Closing
Close Temporary account: Revenue, Expenses, Owner Withdrawals & Income Sumary Step1: Dr. Revenue ; Cr. Income Summary Step2: Dr. Income Summary ; Cr. Expenses Step3: Dr. Income Summary ; Cr. Owner’s Capital Step4: Dr. Owner’s Capital ; Cr. Owner’s Withdrawls
Generally Accepted Accounting Principles Know what is:
GAAP (Generally Accepted Accounting Principles) FASB (Financial Accounting Standards Board) SEC (Securities and Exchange Commission) IASB (International Accounting Standards Board) IFRS (International Financial Reporting Standards)