ACCT 203 Study Guide - Summer 2018, Comprehensive Midterm Notes - Income Statement, Accounting, Retained Earnings
12 Oct 2018
School
Department
Course
Professor
ACCT 203
MIDTERM EXAM
STUDY GUIDE
Fall 2018
GMU ACCOUNTING 203 Lecture 1
Financial Accounting
General purpose financial statements that go to the outside world.
(contains fraud liability)
Managerial Accounting
Internal use only. (contains no liability). Assists managers with 4 general
activities:
planning,
controlling,
evaluating,
decision making
G.A.A.P
Underlines all the rules for the EXTERNAL FINANCIAL accounting realm.
It is run by F.A.S.B.
Objectivity Principle
Accounting information is supported by: reasonable, reliable, and un-
biased evidence.
Historical Cost Principal
find more resources at oneclass.com
find more resources at oneclass.com
Record assets at their cash-equivalent amount.
Revenue recognition
(sales=revenue) GAAP defines a sale by saying: 1. must have a
transaction with a customer, 2. there must be a delivery of a good or
service, 3. And any account receivable is probable of collection.
Accounting Equation
1. Assets = Liabilities + Equity
OR
2. Assets - Liabilities = Equity
AND
Debits = Credits
Asset
An economic resource. Anything tangible or intangible that can be
owned or controlled to produce value and that is held by a company to
produce positive economic value is an asset. ... Current assets include
inventory, while fixed assets include such items as buildings and
equipment.
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
General purpose financial statements that go to the outside world. (contains fraud liability) Assists managers with 4 general activities: planning, controlling, evaluating, decision making. Underlines all the rules for the external financial accounting realm. Accounting information is supported by: reasonable, reliable, and un- biased evidence. Revenue recognition (sales=revenue) gaap defines a sale by saying: 1. must have a transaction with a customer, 2. there must be a delivery of a good or service, 3. And any account receivable is probable of collection. Accounting equation: assets = liabilities + equity. Anything tangible or intangible that can be owned or controlled to produce value and that is held by a company to produce positive economic value is an asset. Current assets include inventory, while fixed assets include such items as buildings and equipment. Liability an obligation and it is reported on a company"s balance sheet. A common example of a liability is accounts payable.
