ACCT 2101- Midterm Exam Guide - Comprehensive Notes for the exam ( 13 pages long!)

• School: Temple University
• Department: Accounting
• Course: ACCT 2101
• Professor: Christian E.Wurst

Document Summary

Chapter 1: a framework for financial accounting: learning objective 1: describe the two primary functions of financial accounting, decisions people make about companies based on accounting data. Imagine each horse has a rider either an investor, an accountant or a business. Activities related to: resources of the company, amounts owed, sto(cid:272)kholde(cid:396)s" investment, distributions to stockholders, sales of products or services, costs of providing sales, key point. Accounting equation (a = l + se: dividends, revenues, expenses. Net income ( r e = ni: the measurement role of accounting is to create a record of the activities of a company. Income statement: state(cid:373)e(cid:374)t of sto(cid:272)kholde(cid:396)s" e(cid:395)uity, balance sheet, statement of cash flows. Income statement: repo(cid:396)ts the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s revenues and expenses over an interval of time. Investing cash flows: cash transactions involving purchase and sale of long-term assets: financing cash flows: cash transactions involving lenders and stockholders. Lia(cid:271)ilities (cid:894)(cid:272)(cid:396)edito(cid:396)s" (cid:272)lai(cid:373)s(cid:895) + to(cid:272)kholde(cid:396)s" e(cid:395)uity (cid:894)o(cid:449)(cid:374)e(cid:396)s" claims):