ACCT 203- Midterm Exam Guide - Comprehensive Notes for the exam ( 20 pages long!)
Document Summary
Managerial accounting: targeted towards specific needs of management (used for business planning) Public accounting: providing audit, tax, and consulting services to the general public. Businesses will continue to operate instead of being closed or sold. The business is accounted for separately from other business entities including it"s owner. A company is required to report the details behind financial statements that would impact users" decisions. Gains: *occasional transactions* generated by selling things like buildings, land, or equipment when you make profit from it. Loss: *occasional transactions* generated by selling things like buildings, land, or equipment when you lose money from it. Accrual basis: financial statements are not pure reflection of cash in/ cash out. We recognize revenue as its earned and we match out expenses with our revenue. Cash basis: revenue is recognized when it is received. (debits always come first in journal entries) Cash events: you get cash at the same time it hits the income statement.
