What is book keeping? Book-keeping is mainly concerned with the recording of financial data relating to business operations in a significant and orderly manner. It is that branch of knowledge which guides us how to keep a record of financial transactions. The need for maintaining a record of income and expenditure in a significant and systematic manner has given birth to the subject of book-keeping. It is difficult for a businessman to remember all receipts and payments that take place during
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University Unit 1 Individual Project ACCT 311 – Managerial Accounting March 25‚ 2012 Abstract This paper describes a company who has just started in the month of March called Cats and Dogs Company started by D.C. Dawg. It gives a summary of the cash transactions that took place during the month of March. It also shows how each cast transactions affects the accounting equation and an additional piece of information that is related to the transaction other than the financial statements. In addition
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Chapter One The Accounting Equation and Double-entry Bookkeeping I. Learning objectives After completing this session‚ students should be able to (1) Define assets‚ liabilities‚ owner’s equity‚ revenue and expenses; (2) Understand the functions of the fundamental accounting equation; (3) Record business transactions and illustrate their effects on the fundamental accounting equation; (4) Understand the accounts payable‚ accounts receivable‚ prepaid insurance‚ and drawing accounts;
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THE ROLES OF ACCOUNTING ON BUSINESS AND OUR SOCIETY By QUINISIA HILL-WILSON MARCH 4‚ 2014 ACC 100 MR. TIMOTHY CARR STRAYER UNIVERSITY WINTER 2014 1. Describe the purpose of each financial statement. Determine which one (1) is the most effective in communicating the financial health of an organization. Defend your position. Income Statement presents revenues and expenses and resulting net income or net loss for a specific time period. Owner’s Equity Statement is a summary
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The accounting equation is an equation that includes the Assets‚ Liabilities‚ and Stock of a company. These three attributes determine the value of a company. This value is used to file the company’s taxes. When the value is figured by the accounting equation‚ investors can determine a possible return on their investments. Assets are resources owned by a business. Liabilities are the debts and obligations of the business. Liabilities represent claims of creditors on the assets of the business
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What is the DuPont equation‚ and how does it capture the nature of expense control‚ efficiency of asset management‚ and financial leverage (or debt) of a firm? If you were the CFO of your firm (or a hypothetical firm)‚ what variable would you concentrate your efforts on and why? The DuPont equation is a method of measurement that was started by the DuPont Corporation in the 1920s. In this method of measurement the assets are measured at their gross book value rather than at their net book value which
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Accounting Equation Paper NAME ACC/300 INSTRUCTOR DATE The basic accounting equation is: Assets = Liabilities + Stockholders’ Equity. When looking at the balance sheet one can assume that assets must balance out each transaction and balance the claims to the assets (Kimmel‚ 2010). A balance sheet provides Assets of the company first and foremost‚ then Liabilities and Stockholders’ Equity and last retained earnings. This shows the companies incoming money‚ outgoing payments‚ and the
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The role of accounting The role of accounting in business is to help interested parties (internal and external) to make business decisions. LEARNING OBJECTIVE Explain how the accounting process aids in the making of business decisions KEY POINTS Financial accounting generates some of the key documents‚ including profit and loss account showing the method of business traded for a specific period and the balance sheet which provides a statement showing mode of trade in business for a specific
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Transaction Cost Analysis as Framework According to TCA‚ a transaction is the transfer of goods or a service and the analysis of transactions emphasizes on achieving efficiency in their administration (Rindfleisch & Heide 1997). Firm is a particular form of organization for administering transactions between one party and another and is characterized as a managerial hierarchy. In contrast‚ market governance is characterized as transaction taking place without managerial oversight. Firms exist
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ACCOUNTING IN BUSINESS “Defining the three important financial statements has made analysts’ life simpler by ensuring consistency in reporting”. Analyzing a business’s performance and standing can be adequately done using financial statements. WORD COUNT: -1463 Kunal Sharman SHTM 2012 Institute for international management and technology Oxford Brookes University Ms.Garima Gupta “Defining the three important financial statements has made analysts’ life simpler by ensuring consistency in
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