[ACCT 2013] - Final Exam Guide - Comprehensive Notes for the exam (143 pages long!)

• School: University of Arkansas
• Department: Accounting
• Course: ACCT 2013
• Professor: Robyn D.Jarnagin

Document Summary

Chapter 2: accounting cycle -during the period- (def"n)the full set of procedures used to accomplish two-step measurement/ communication process. Two-step= 2 functions of financial acct: measure business activities of the company, communicate those measurements to external parties for deci- sion-making purposes. (def"n)transactions the firm conducts w. a separate economic entity. Eg: sell products to costumers, purchase supplies from vendor, pay salaries to employees, borrow money from a bank, internal transactions. (def"n)events that affect the financial position of the company but do not in- clude an exchange w. separate company or individuals. Eg: use supplies already purchased, earn revenue after having received cash in advance from a customer. 6 steps to measure external transaction : 1. use source documents to identify accounts affected b y external transaction. Source doc: sales invoice, bills from supplier, signed contracts etc. -> identify date & nature of transaction, participating parties, mone- tary terms: 2. analyze the impact go the transaction on the accounting equation.