ACCT 2000 Chapter : Additional Notes ACCT CH 1
Additional Notes ACCT CH 1
Accounting definition- the information system that identifies, records, and communicates the
economic events of the organization to interested users.
Sarbanes Oxley Act (SOX) ENRON’s financial statement and falsification of records led to the
government passing of the Sarbanes Oxley Act in 2002.
Amounts owed to others are called liabilities
Two types of liabilities:
1) notes payable 2) bonds payable
Money coming inform operations is revenue. Service revenue is money you get from your
service, sales revenue comes from your sales, and interest revenue comes from money owed to
you i.e a bank giving a loan.
When your customer owes you that is considered an account receivable
When you owe your supplier that is considered an account payable
Accounting Equation----- Assets = Liabilities + Stockholder’s Equity
10 = 8 + 2
*Your liabilities and stockholder’s equity must equal your assets*
Common Stock is the amount invested by stockholders
Retained Earnings comes R/E statement
Document Summary
Accounting definition- the information system that identifies, records, and communicates the economic events of the organization to interested users. Sarbanes oxley act (sox) enron"s financial statement and falsification of records led to the government passing of the sarbanes oxley act in 2002. Two types of liabilities: notes payable 2) bonds payable. Service revenue is money you get from your service, sales revenue comes from your sales, and interest revenue comes from money owed to you i. e a bank giving a loan. When your customer owes you that is considered an account receivable. When you owe your supplier that is considered an account payable. Accounting equation----- assets = liabilities + stockholder"s equity. *your liabilities and stockholder"s equity must equal your assets* Common stock is the amount invested by stockholders.
