BMGT 220 Chapter Notes - Chapter 1: Delta Air Lines, Revenue Recognition, Retained Earnings
12 Sep 2016
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3 types of businesses (for profit: service business: provides services to customers, ex. Delta airlines, twitter: merchandising business: sell products they purchase from elsewhere to customers, ex. Walmart, amazon. com: manufacturing business: change inputs into products for sale, ex. Identify users: assess user"s information needs, design the accounting information system to meet user"s needs, record economic data about business events, prepare accounting reports. Managerial vs financial accounting: managerial: provides internal users with information, managers, employees, financial: provides external users with information, ex. investors, creditors, customers. Assets = liabilities + stockholder"s equity: assets: resources owned by a business (cash, land, supplies, liabilities: rights of creditors/debts of business, stockholder"s equity: rights of owners. Financial statements for a corporation (in order of how they are prepared) Miscellaneous expense: total expenses, net income: fees earned - total expenses (revenue - expenses) Retained earnings statement: retained earnings from start date:
