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CHAPTER 1: INTRODUCING FINANCIAL ACCOUNTING

FINANCIAL ACCOUNTING Fundamentals, Ch. 1, Wild, 2009. Page 1 CHAPTER 1: INTRODUCING FINANCIAL ACCOUNTING I. IMPORTANCE OF ACCOUNTING ACCOUNTING is the language of business and is called this because all organizations set up an ACCOUNTING information system to communicate data to help people make better decisions. ACCOUNTING is a system that Indentifies Records Communicates relevant, reliable, and comparable information about an organization s business activities. Identifying means selecting transactions and events relevant to an organization. Example: sale of iPods by Apple, receipt of ticket money by TicketMaster. Recording means keeping a chronological log of transactions and events measured in dollars and classified and summarized in a useful format.

(1) General Principles—the basic assumptions, concepts, and guidelines for preparing financial statements. (2) Specific Principles—detailed rules used in reporting business transactions and events. a. Accounting Principles i. Cost Principle Means that accounting information is based on actual cost. Cost is measure on a cash or equal-to-cash

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CHAPTER 1: INTRODUCING FINANCIAL …

www.ccs.edu

Financial Accounting Fundamentals, Ch. 1, Wild, 2009. Page 1 CHAPTER 1: INTRODUCING FINANCIAL ACCOUNTING I. IMPORTANCE OF ACCOUNTING Accounting is the language of business and is

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CHAPTER 7: OFFER AND ACCEPTANCE

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Page 6 Law for Business & Personal Use Adamson-Mietus, 2000 Pages 98-109 revocation removal of an offer before acceptance Modification or revocation is not effective until it is communicated to the offeree or received at the offeree’s mailing address. B. TIME STATED IN THE OFFER When making the offer, the offeror may state how and when the offer must be …

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CHAPTER 3: PREPARING FINANCIAL STATEMENTS

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CHAPTER 3: PREPARING FINANCIAL STATEMENTS I. TIMING AND REPORTING A. The Accounting Period Time period assumption—an organization’s activities can be divided into specific time periods. Examples: a month, a three-month quarter, a six-month interval, or a year Accounting (Reporting) periods—length of

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