ACC 100 Study Guide - Final Guide: Accounting Equation, Financial Statement, No Entry
Document Summary
Accounts: common subgroups of financial reporting elements that are used to accumulate (gather) business activities. Financial statements: tell business"s story, what it does and how well. Use professional naming business: that business has an elaborate system to create names, and they know their way around trade mark laws. What never to do: use strings of numbers (hard to remember, use geographic or generic names, long/ confusing names, personal puns that only you understand. Name should relate to customer to attract and is comforting/familiar. Make sure no one already has that name. Spend 6 months to produce name, and a few weeks to pick. Prepaid expense (deposit): this is an account in assets. As you use this asset the value goes down per month and then becomes an expense. Used when purchasing something from someone (supplier) which then you owe money to. Also used for borrowing money, like from the bank. Used when website has been used up each month.
