Exam 1 Study Guide (14 pages)

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Exam 1 Study Guide



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Exam 1 Study Guide

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Pages:
14
Type:
Study Guide
School:
University of Arizona
Course:
Acct 200 - Introduction to Financial Accounting
Edition:
1

Unformatted text preview:

ACCT 200 1st Edition Exam 1 Study Guide Lectures 1 8 Lecture 1 Financial acct measures business activities of a company and communicates those measurements to external parties for decision making purposes Sole proprietorship owned by a single person works for small operations that don t have a lot of risk Partnership owned by two or more persons e g dentists still pretty easy but slightly more risky Corporation legally separate from its owners Business activities to measure 1 Financing activities involves funding from external sources 2 Investing activities involves purchase and sale of long term resources restaurant oven tables cash register refrigerator etc 3 Operating activities involves transactions in primary operations of business BASIC ACCOUNTING EQUATION Assets liabilities stockholders equity Assets resources owned by the business cash accounts receivable land equipment supplies inventory Cash money in a checking account Accounts receivable money due from customers Supplies little things paper pencils Inventory things you sell the customers Liabilities debts owed to creditors accounts payable notes payable wages payable and unearned revenue Stockholders Equity owners claim to net value of company common stock retained earnings Revenue expenses net income then company can distribute dividends to investors Revenue expenses net loss Revenues the amounts earned from selling products or services to customers Expenses costs associated with running the business paying wages insurance rent etc Supplies on a balance sheet asset account supplies sitting in a cabinet waiting to be used Supplies expense supplies used up Revenue when earned provided a service for a customer sold an item to a customer they left with it work is completed for a customer provided a flight to the Bahamas for a customer not buying a ticket but actually transporting me is when the airline has revenue Expenses hired a repair crew to repair plumbing issue that was fixed At the end of each day a



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