BUS 214 Study Guide - Midterm Guide: Financial Accounting, Accounts Receivable, Trial Balance
Document Summary
Objectives: accounting is the language of business, business organization forms, accounting equation, financial statements. Income statement: statement of retained earnings, balance sheet, statement of cash flows. Business organization: proprietorship: one owner, personally liable, partnership: 2+ owners, general partners liable, limited partners are not, corporation: owned by stockholders who are not personally liable. Llc: owned by members, who are not personally liable. Frameworks for measurement: gaap: generally accepted accounting principals, fasb: financial accounting standards board; formulates gaap, sec: securities exchange commission; oversees gaap for public corporations. Accounting equation: assets= liabilities + o(cid:449)(cid:374)ers" equity, assets: cash, cash equivalents, inventories, property, plant, and equipment, economic resources, expected future benefit. Liabilities: accounts payable, income taxes payable, long term debt: outsider claims, expected future obligation, o(cid:449)(cid:374)ers" equity: rev-expenses- dividends. Insider claims: stockholders ownership of net assets. Assets: cash and cash equivalents, short-term investments, accounts receivable, prepaid expenses, property and equipment, accumulated depreciation. Liabilities: accounts payable, accrued expenses, current maturities of long-term debt.
