Exam Cpa

What is story? story as a Form of Communication Accounting is the process of identifying, measuring, and communicating economic information to various users. Its character is to provide economic information astir(predicate) an organization that leave be useful to those who need to make decisions regarding that entity. For example, information provided by an accountant about an entity is useful to a banker in attain a decision about whether to loan money to a business. ACCOUNTING IS TELLING THE STORY: WHAT HAPPENED AND WHERE DOES A COMPANY behave AS A RESULT Chapter 1 Slide 1-1 ECON 3A UCSB-- ANDERSON Slide 1-2 ECON 3A UCSB-- ANDERSON equalizer SHEET BALANCE SHEET/ STATEMENT OF FINANCIAL POSITION ASSET: potential early economic benefit as a return of a past transaction, examples: Cash, accounts receivable LIABILITY: Probable future economic sacrifice as a result of a past transaction, examples: accounts payable, accrued expenses justness: Residual interest of owners, examples well-kept earnings, common stock A =L+E Slide 1-3 The method of accounting equation- ALGEBRA If A=L+E, then: E= A- L …. EQUITY = ASSETS - LIABILITIES THEREFORE THE EQUITY IS WHAT IS LEFTOVER FROM THE ASSETS AFTER PAYING every(prenominal) LIABILITIES. MAY BE EASIER TO REMEMBER THIS WAY.

Slide 1-4 ECON 3A UCSB-- ANDERSON ECON 3A UCSB-- ANDERSON INCOME STATEMENT receipts: Reported when it is earned EXPENSE: Reported when the benefit is derived. Leads to the excogitation of MATCHING (now called the Expense Recognition Principle), which means we play the expense to the period in which the associated revenue is recorded. A expression about International Accounting These fundamentals that you are about to learn in this class will be relevant whenever the IFRS convergence takes place!! Slide 1-5 ECON 3A UCSB-- ANDERSON Slide 1-6 ECON 3A UCSB-- ANDERSON Why is Accounting Important? Accounting is important for markets, free enterprise, and competition because it assists in... If you trust to get a full essay, order it on our website: Ordercustompaper.com

Ordercustompaper.com is a professional essay writing service at which you can buy essays on any topics and disciplines! All custom essays are written by professional writers!