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ACG 2021

ACG 2021. Financial Accounting Chapter 1. ACG 2021 is a Marathon. Pace yourself and don’t let up!. Question Which is the Home Team. Indiana Pacers Miami Heat. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.

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ACG 2021

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  1. ACG 2021 Financial Accounting Chapter 1

  2. ACG 2021 is a Marathon Pace yourself and don’t let up!

  3. Question Which is the Home Team Indiana Pacers Miami Heat

  4. Don’t forget: You can copy-paste this slide into other presentations, and move or resize the poll.

  5. Accounting Concepts & Principles Entity Assumption Going-Concern Assumption Historical Cost Principle Stable-Monetary-Unit Assumption

  6. The Accounting Equation Assets = Liabilities + Stockholders Equity Assets = Liabilities + Paid in Capital + Retained Earnings Assets = Liabilities + Paid in Capital (+ Revenue – Expenses – Dividends) Assets + Expenses + Dividends = Liabilities + Paid in Capital + Revenue

  7. The Financial Statements

  8. Income Statement • Also Known As: • Statement of Operations • Measures: • Net Income • Net Earnings • Net Profit or Loss • Revenues – Expenses • Time Period • During a specific period of time (arbitrary cutoff dates) • Monthly • Quarterly • Annually

  9. Statement of Retained Earnings • How did a company use it’s Earnings • Paid out in Dividends • Reduces retained earnings since earnings are leaving the company in the form of dividends to owners • Retained for Re-investment • Increases retained earnings

  10. Balance Sheet • Also Known As: • Statement of Financial Position • Measures: • Assets • Resources of a business • Liabilities • Amounts business owes to others • Stockholders Equity • Paid in Capital • Amount invested by shareholders • Retained Earnings • Time Period • A single point in time – A Snapshot of the Corporation

  11. Cash Flow Statement • Most Important Statement! • What did the company do to: • Generate Cash • Spend Cash • Examines 3 Aspects of Cash Creation/Use • Operating • Investing • Financing

  12. Accounts Assets Liabilities & Equity Cash Accounts Receivables Inventory Short term investments Prepaid Assets Supplies Land Property, Plant & Equipment • Accounts Payable • Other Payables • Long-tern Payables • Notes Payable • Bonds • Common Stock • Retained Earnings • Beg Retained Earnings • + Revenue • - Expenses • - Dividends

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