100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Financial accounting lecture notes/summary $5.93
Add to cart
Quickly navigate to
Preview
  2.  
  3. Tilburg University (UVT)
  4.  
  5. Financial Accounting

Class notes

Financial accounting lecture notes/summary

 3 purchases
  • Course
  • Financial Accounting
  • Institution
  • Tilburg University (UVT)
  • Book
  • Financial Accounting 10e ed

This 23 page document contains all the lecture notes of the course Financial accounting, complete with theory, formulas and explanations. This summary is perfect for your finals, since it contains all the information.

Preview 3 out of 23  pages

Document information

  • December 8, 2020
  • 23
  • 2020/2021
  • Class notes
  • Dirk leyten
  • All classes

Subjects

  • financial accounting
  • finals
  • iba
  • tilburg university
  • lecture notes
  • summary

Connected book

book image

Book Title:

Author(s):

  • Edition:
  • ISBN:
  • Edition:

More summaries for

  • SOLUTION MANUAL FOR Financial Accounting 11th Edition by Robert Libby, All Chapters 1 - 13
  • SOLUTION MANUAL FOR Financial Accounting 11th Edition by Robert Libby, All Chapters 1 - 13
  • Solution Manual For Financial Accounting, 8th Canadian Edition 2024, by Libby, Hodge, Verified Chapters 1 - 13, Complete Newest Version
All for this textbook (10)

Written for

  • Tilburg University (UVT)
  • International Business Administration
  • Financial Accounting
All documents for this subject (7)

Seller

avatar-seller
joannamatos

Content preview

Financial Accounting
(week 1)
Accounting is an information system that:
- measures business activities
- processes data into reports
- communicates results to people and organizations
Management accounting system
Generates info for internal decision makers (managers throughout organization)
It gives a detailed plan and continuous performance reports. It has no standards of
reliability.

Management vs Financial Acc
Different users = different of information needed
Main Areas of differences
● nature of report produced
● level of detail
● regulations
● reporting interval
● time orientation
● range & quality of information

Income statement, statement of stockholders equity, balance sheet and statement of
cash flows are the four basic financial statements.

Income statement
How well did the company perform during the year?
Income statement = profit & loss account
Focus on financial performance over a certain period.
Revenues = inflow of economic sources from operations
Expenses = outflow of economic sources from operations.

Balance sheet
What is the company’s financial position on December 31?
Balance sheet = statement of financial position at a certain point in time.
Assets = resources held by the business
Liabilities = claim on business assets by non-owners
Equity = claim on owner of business assets

Statement of Stockholders’ equity
How net income and dividends affect company’s financial position at December 31
Statement of Cash flows
How much cash did the company generate and spend during the year?

,The Annual report
Basic overview of the operational, financial and extraordinary performance of the
company.
It's over a specific period (normally 1 year)
Compared to previous periods (evolutions+comparisons)
Basically these are numbers and some notes, explaining these numbers




(week 2)
Balance sheet
Left hand side = Assets (economic resources)

, Right hand side = Liabilities + stockholder’s equity (sources of financing economic
resources.)
Both have to be equal to each other at all times!
Trade receivables zijn debiteuren, account receivables ook maar staan bij current
asset.
Trade payables = debt, crediteuren
Assets
An asset is a resource held by the business. You need an asset to run your
business. The business should own your asset.
Non-current assets (fixed assets): Intention of being used during multiple production
cycles rather than held for sale, expected to convert in cash >1 year, for example:
property,plant and equipment.
Current assets: cash and other assets expected to convert in cash <1 year, for
example: cash,inventory, etc.
Liabilities and equity
Liabilities: all claims, other than those of owners.
Notes (bank) ⇔ Accounts (suppliers)
- LT liabilities = Non-current liabilities (>12 months)
- ShT liabilities = Current liabilities (<12 months)
Stockholders equity: Claim of the owners on the business
Owners’ investment + accumulated sum of undistributed profits + all additional equity
investments.

Transaction analysis
1. What business activities cause changes in the balance sheet?
2. How do specific activities affect each balance?
3. How do companies keep track of balance sheet amounts?
Requirements: Faithful representation: the information should be complete, neutral
and free from error.
Assumption: going concern: states that business are assumed to continue to operate
into the foreseeable future.
Accounts records all changes in a particular assets, liability or equity during a period.
Account title
-----------------------------
Debit on the left l Credit on the right
Debit and credit are neutral terms, meaning either a decrease or increase.
Assets = liability + stockholders equity
Every transaction has 2 sides
1. Business gives something
2. Business receives something

Journal entry
Chronological record of the transactions = Journal
Three steps to book transactions

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller joannamatos. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $5.93. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69052 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$5.93  3x  sold
  • (0)
Add to cart
Added