*Luca Pacioli - Father of Accounting (double entry book keeping), monk-1494, debit/ creditManagerial Accounting - "internal"Financial Accounting - "external"conveyance of financial information to external parties so they can make good decisionsForms:ProprietorshipPartnership (two or more individuals)"C" Corporationcontributing capitalretained earningsLimited Partnership"S" CorporationLLCWhy Buy Shares of Stock?Price AppreciationDividends*Return = (End of year price - beginning of year price) + Annual DividendBeginning of Year Price*EX: Purchase stocks for $80 on 10/1/2001. Quarterly dividend paid in November at $.50 per share. On 12/31/1 price is $83. What is annual return? (HINT: because the dates represent only one quarter, and you are looking for an annual return, you must multiply equation by four)4[((83-80)+.50)/80] = 17.5%Important concepts of AccountingAccounting is the backbone of any business major in collegeEthicsLiquid assets are as important as cashCPA - education, experience, pass CPA exam10K - public financial information of a businessAnnual Report10K & Annual Reports include the following for FASBIncome StatementBalance SheetStatement of Cash FlowsStatement of Owner's Equity*Income Statement NI=R-ECan be nominal or temporaryRevenues - inflows or increases in net assets from providing goods and/ or servicesExpenses - outflows or decreases in net assets from providing goods and/or servicesNet Assets- (total assets - total liabilities) or owners' equity*Balance Sheet A=L+OEcan be real or permanentAssets - Economic resourcesLiabilities - creditors' claimsOwners' Equity - owners' claimscontributed capitalretained earnings - accumulated net income in excess of dividendsStatement of Cash Flows - Changes in cashOperating: Incomes StatementInvesting: long term assetsFinancing: Long term liabilities + Owners' EquityBUSI 101 01/08/2014*Luca Pacioli - Father of Accounting (double entry book keeping), monk--1494, debit/ creditManagerial Accounting - "internal"Financial Accounting - "external" -conveyance of financial information to external parties so they can make good decisionsForms:-Proprietorship-Partnership (two or more individuals)-"C" Corporationocontributing capitaloretained earnings-Limited Partnership-"S" Corporation-LLCWhy Buy Shares of Stock? -Price Appreciation-Dividends*Return = (End of year price - beginning of year price) + Annual Dividend Beginning of Year Price*EX: Purchase stocks for $80 on 10/1/2001. Quarterly dividend paid inNovember at $.50 per share. On 12/31/1 price is $83. What is annual return?(HINT: because the dates represent only one quarter, and you are looking for an annual return, you must multiply equation by four)-4[((83-80)+.50)/80] = 17.5%Important concepts of Accounting-Accounting is the backbone of any business major in college-Ethics-Liquid assets are as important as cash-CPA - education, experience, pass CPA exam-10K - public financial information of a business-Annual Report10K & Annual Reports include the following for FASB-Income Statement-Balance Sheet-Statement of Cash Flows-Statement of Owner's Equity*Income Statement NI=R-E -Can be nominal or temporary-Revenues - inflows or increases in net assets from providing goods and/ or services-Expenses - outflows or decreases in net assets from providing goods and/or services-Net Assets- (total assets - total liabilities) or owners' equity*Balance Sheet A=L+OE-can be real or permanent-Assets - Economic resources-Liabilities - creditors' claims-Owners' Equity - owners' claimsocontributed capitaloretained earnings - accumulated net income in excess of dividendsStatement of Cash Flows - Changes in cash-Operating: Incomes Statement-Investing: long term assets-Financing: Long term liabilities + Owners'
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