Presentation Transcript

1. ACG 2021

   Financial Accounting Chapter 1
2. ACG 2021 is a Marathon Pace yourself and don’t let up!
3. Question Which is the Home Team Indiana Pacers Miami Heat
4. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.
5. Accounting Concepts & Principles Entity Assumption Going-Concern Assumption Historical Cost Principle Stable-Monetary-Unit Assumption
6. The Accounting Equation Assets = Liabilities + Stockholders Equity Assets = Liabilities + Paid in Capital + Retained Earnings Assets = Liabilities + Paid in Capital (+ Revenue – Expenses – Dividends) Assets + Expenses + Dividends = Liabilities + Paid in Capital + Revenue
7. The Financial Statements
8. Income Statement Also Known As: Statement of Operations Measures: Net Income Net Earnings Net Profit or Loss Revenues – Expenses Time Period During a specific period of time (arbitrary cutoff dates) Monthly Quarterly Annually
9. Statement of Retained Earnings How did a company use it’s Earnings Paid out in Dividends Reduces retained earnings since earnings are leaving the company in the form of dividends to owners Retained for Re-investment Increases retained earnings
10. Balance Sheet Also Known As: Statement of Financial Position Measures: Assets Resources of a business Liabilities Amounts business owes to others Stockholders Equity Paid in Capital Amount invested by shareholders Retained Earnings Time Period A single point in time – A Snapshot of the Corporation
11. Cash Flow Statement Most Important Statement! What did the company do to: Generate Cash Spend Cash Examines 3 Aspects of Cash Creation/Use Operating Investing Financing
12. Accounts Assets Liabilities & Equity Cash Accounts Receivables Inventory Short term investments Prepaid Assets Supplies Land Property, Plant & Equipment Accounts Payable Other Payables Long-tern Payables Notes Payable Bonds Common Stock Retained Earnings Beg Retained Earnings + Revenue - Expenses - Dividends