MGMT 20000 Study Guide - Fall 2018, Comprehensive Midterm Notes - Accounts Receivable, Matching Principle, Trial Balance
12 Oct 2018
School
Department
Course
Professor
MGMT 20000
MIDTERM EXAM
STUDY GUIDE
Fall 2018
Chapter 1: A Framework for Financial Accounting
-Accounting: writing and sorting info
-Information system
-Identifies and measures business activities
-Process info into reports
-Communicates results to decision makers
-Two branches of accounting
-Financial
-Managerial
-Financial accounting: going to parties outside of the company
-Info: financial statements (reports)
-Users: external
-Rules: yes
-Objective: verifiable (used to make a decision)(how much you sold)
-Emphasis: historical (reporting what happened in the past)
-Managerial accounting: accountant inside the company
-Info: planning and control (do you need more employees, how much steel do I
need to
buy for tomorrow)
-Users: internal
-Rules: no
-Objective: can be subjective (forecasting)
-Emphasis: historical and future oriented
-Financial accounting
Business entity
Events and transactions
Storage units
8/22/18
Wednesday, August 22, 2018
1:01 PM
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do I
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Document Summary
Financial accounting: going to parties outside of the company. Objective: verifiable (used to make a decision)(how much you sold) Emphasis: historical (reporting what happened in the past) Info: planning and control (do you need more employees, how much steel do i need to buy for tomorrow) Lo1: understand the business activities that financial accounting measures. Transactions must affect the financial position of the business to be recorded in a financial accounting system. Ex: the receipt of a sales order from a customer is not recorded until the product or service is provided to the customer. A business event that is not considered a recordable transaction is when the product has not been received yet. Ex: a customer places an order for a product but hasn"t received it yet. Signing a contract is not recorded in an accounting system. Until the product is provided in the contract, it"s not recorded. You record a payment when it is delivered, not when:
