Accounting notes
INTRODUCTION TO ACCOUNTING
ACNT 1303
Lecture Notes
GENERAL INFORMATION FOR COMPLETING THE CLASS
The following is a summary of the twelve chapters that you will be completing this semester. Be sure that you are taking the time to read and STUDY each chapter. It is important to go through each of the examples in the book and to complete the Review Quiz. Spending time reading and understanding before you start the homework assignment will help you to complete in the exercises and case problems with more understanding. Please ask questions to clarify questions that you may have on any assignment or concept. Be sure to check your answers in the notebooks before turning in your assignments. There are
PowerPoint slides on the “I” drive that you may want to review before taking your exams or as reinforcement to your reading.
Chapter 1
The Nature of Accounting
Accounting is the process of recording, summarizing, analyzing, and interpreting financial (moneyrelated) activities to permit individuals and organizations to make informed judgments and decisions.
By law all businesses must keep accounting records. Decisions are based on accounting information for profit and non-profit companies alike.
There are different forms of business organizations: o o o Private business—object is to earn a profit
Sole Proprietorship—owned by one person
Partnership—co-owned by two or more persons
o
Corporation—owned by investors called stockholders (The business—not the owners—are responsible for the company’s obligations.)
There are different types of business organizations:
•
•
•
Service business—doctors, lawyers, barber shop, etc.
Merchandising business—purchases goods for resale
Manufacturing business—produces a product to sell
THE ELEMENTS OF ACCOUNTING
ASSETS
Assets are items with money value that are owned by a business. Some examples are: cash, accounts receivable (selling goods or services on credit), equipment (office, store,
ACNT 1303
Lecture Notes
GENERAL INFORMATION FOR COMPLETING THE CLASS
The following is a summary of the twelve chapters that you will be completing this semester. Be sure that you are taking the time to read and STUDY each chapter. It is important to go through each of the examples in the book and to complete the Review Quiz. Spending time reading and understanding before you start the homework assignment will help you to complete in the exercises and case problems with more understanding. Please ask questions to clarify questions that you may have on any assignment or concept. Be sure to check your answers in the notebooks before turning in your assignments. There are
PowerPoint slides on the “I” drive that you may want to review before taking your exams or as reinforcement to your reading.
Chapter 1
The Nature of Accounting
Accounting is the process of recording, summarizing, analyzing, and interpreting financial (moneyrelated) activities to permit individuals and organizations to make informed judgments and decisions.
By law all businesses must keep accounting records. Decisions are based on accounting information for profit and non-profit companies alike.
There are different forms of business organizations: o o o Private business—object is to earn a profit
Sole Proprietorship—owned by one person
Partnership—co-owned by two or more persons
o
Corporation—owned by investors called stockholders (The business—not the owners—are responsible for the company’s obligations.)
There are different types of business organizations:
•
•
•
Service business—doctors, lawyers, barber shop, etc.
Merchandising business—purchases goods for resale
Manufacturing business—produces a product to sell
THE ELEMENTS OF ACCOUNTING
ASSETS
Assets are items with money value that are owned by a business. Some examples are: cash, accounts receivable (selling goods or services on credit), equipment (office, store,