Accounting Boot camp

1. May2012 Accounting Boot camp

2. YOUR INSTRUCTORS Allison Collins Bill Pasewark Introduction to Accounting Boot Camp

3. Why are we here? Have not had accounting before Do not have to take undergraduate fundamentals course Introduction to Accounting Boot Camp

4. Purpose of the boot camp Nothing Fancy ! Provide an accounting background to those with limited experience in accounting Introduction to Accounting Boot Camp

5. Course objectives • Know how accounting information is used by • Lenders • Investors • Regulatory compliance officers • Management • Employees • Understand essential accounting terminology • Understand the role of auditors • Recognize the difference between cash-basis and accrual-basis of accounting Introduction to Accounting Boot Camp

6. Course objectives (continued) • Navigate the accounting cycle (the process by which transactions become represented in the financial statements). • Be familiar with the structure of a corporate annual report. • Be familiar with the format and purpose of primary financial statements including • balance sheet • income statement • cash flow statement Introduction to Accounting Boot Camp

7. Boot camp content Concepts and Standard Formation Financial Statements Transaction Analysis Accounting Cycle Primary Accounts Time Value of Money Cash Flow Introduction to Accounting Boot Camp

8. 1A Standard formation Accounting has rules! Rules differ from country to country Who makes the rules? How do the rules become official (promulgated)? Introduction to Accounting Boot Camp

9. 1B Primary financial statements There are three primary financial statements: • Balance Sheet – What do we own; what do we owe? • Income Statement – Were we successful? • Statement of Cash Flow – Where did money come from? Where did money go? Introduction to Accounting Boot Camp

10. 2 Accounting cycle • Accounting Cycle – repetitive process of generating financial information • Follows process of: Action → Reflection → Reaction • In accounting terms: Transaction → Adjustment → Closing → Prepare Financial Statements Introduction to Accounting Boot Camp

11. 3 Primary accounts What accounts are used by most firms? • Receivables – money owed to us • Inventory – things we will sell • Fixed Assets – property, plant, and equipment • Payables and Debt – money we owe to others Introduction to Accounting Boot Camp

12. 4 Time value of money Accounting and the Fourth Dimension • Financial position is affected by • how much cash is received (paid), and • when cash is received (paid) • Would you rather have $1,000 now or $1,000 ten years from now? • How does inflation and rate of return affect payments and receipt of money? Introduction to Accounting Boot Camp

13. 5 Cash Flows • Statement of Cash Flow •  How do increases and decreases in cash affect the company? • Cash Flow Classifications Introduction to Accounting Boot Camp

14. Boot camp resources • Textbook– same as ACCT 5301 course • Readings – in the syllabus • Notes – in your hands and on the web Introduction to Accounting Boot Camp

15. assessment Take home assignments Attendance will be taken Exam at the end Introduction to Accounting Boot Camp