Acct 230 1st Edition Lecture 5Outline of Last Lecture II. Accounting Information & Decision Makinga. Accounting as a Measurement/Communication Processb. Financial Accounting Informationc. Careers in AccountingOutline of Current Lecture III. Accounting Information & Decision Makinga. Careers in AccountingCurrent LectureII. Accounting Information & Decision Makinga. Careers in Accountingi. Careers in Accountingii. Conceptual Framework1. Assumptions for GAAPa. Economic Entity Assumptioni. Identify all economic events with a particular economic entityb. Monetary Unit Assumptioni. Need a unit or scale of measurementc. Periodicity Assumptioni. Provide information of an enterprise at regular timeperiodsd. Going Concern Assumptioni. Business entity will continue to operate indefinitelyIII. Exam Review: Multiple choicea. Definitions to know:i. Assetsii. Liabilitiesiii. Equityiv. Investment by ownersv. Distributions to ownersvi. Comprehensive incomevii. RevenuesThese notes represent a detailed interpretation of the professor’s lecture. GradeBuddy is best used as a supplement to your own notes, not as a substitute.viii. Expensesb. Sample Questions:i. For the past 5 years, Mookie Consulting Services reported the following annual net income and dividends amounts:year 1: NI: 22000 D:2000Year2: NI: 17000 D:2000Year 3: NI: 9000 D: 1000Year 4: NI 14000 D: 3000Year 5: NI:25000 D:4000If MCS Had retained earnings of 88000 at the end of year 5, what was the company’s retained earnings?1. Answer: $13000ii. Example Financial Statements will be on the exams.iii. Matching
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