ACCT 201 Lecture Notes - Lecture 1: Stock Market Crash, Retained Earnings, Income Statement
Document Summary
Chapter 1 intro to accounting in business. Accounting communicating with financial information: communicates with every department within a business. Internal users - people within a business/ department. External users people or businesses that are outside of a business/ department: ex. The government taking taxes through a business"s accounting program. There are lots of opportunities in accounting: being an accountant comes with lots of flexibility. Ethics: in 1929, the stock market crashes due to no ethical rules within a business. Stock market crash was the beginning for a set of rules for stock selling companies. 1973 was the beginning of rules for companies that didn"t sell stocks. Revenue regulatory principle businesses can"t have the money made from revenue unless they provide a service for the money. Assets = liabilities + equity: assets anything a business owns. Cash, equipment, supplies, inventory, accounts receivable: liabilities anything a business owes. Accounts payable, wages payable, interest payable, taxes payable: equity amount a company grows.
