Samenvatting

Accounting 2020 summary lectures book l MAN BCU 168

4 keer verkocht

Vak
Accounting (MANBCU168)

Instelling
Radboud Universiteit Nijmegen (RU)

Summary of all lectures and of the book, all the chapters we need to know. Highlighted what is important for the exam and includes all formulas. Is focussed on explaining everything in an very easy way to be successfull at the exam. Author passed the exam. Do not buy on sunday.

[Meer zien]

Voorbeeld 7 van de 49 pagina's

Bekijk voorbeeld

Heel boek samengevat? Nee
Wat is er van het boek samengevat? Everything you need to know for the exam.
Geupload op 3 juni 2020
Aantal pagina's 49
Geschreven in 2019/2020
Type Samenvatting

Volgen

MariavanRoos Lid sinds 5 jaar 370 documenten verkocht

€2,99

In winkelwagen

Op verlanglijstje

100% tevredenheidsgarantie
Direct beschikbaar na je betaling
Lees online óf als PDF
Geen vaste maandelijkse kosten

,Inhoud
Accounting Lecture 1 (CH 1+2) ............................................................................................................3
Accounting Lecture 2 (CH3+4) .............................................................................................................7
Accounting Lecture 3 (CH5+6) ........................................................................................................... 10
Accounting Lecture 4 (CH 9 +10) ....................................................................................................... 14
Accounting Lecture 5 (CH 11+14) ...................................................................................................... 20
Accounting Lecture 6 (CH 16+17) ...................................................................................................... 24
Accounting Lecture 7 (CH 13) ............................................................................................................ 28
Accounting Lecture 8 (CH 18+19) ...................................................................................................... 32
Accounting Lecture 9 (CH21+22) ....................................................................................................... 35
Accounting Lecture 10 (CH 23+24) .................................................................................................... 40
Accounting Lecture 11 (CH 25+26) .................................................................................................... 46

,Accounting Lecture 1 (CH 1+2)
Chapter 1 Accounting and the Business Environment
#1 Explain why accounting is important and who are the users
Accounting is the information system that measures business activities, processes the information
into reports, and communicates the results to decision makers.
Financial accounting: External users, investors, customers etc.
Managerial accounting: Internal users, to increase production and effectiveness.
ROA: Return on assets

#2 Describe the organizations and rules that govern accounting
GAAP: Generally Accepted Accounting Principles
- Relevant information
- Faithfully representative information
Accounting principles:
1. Economic Entity Assumption -> Each entity is economically independent.
2. Cost principle -> All assets and liabilities must be recorded.
3. Going concern -> Assumes that the entity will remain in operation for the foreseeable future.
4. Monetary unit -> All transactions can be measures in terms of a monetary unit.

#3 Describe the accounting equation

Assets = Everything that an organization owns (Economic resources that are expected to benefit the
business in the future)
Liabilities = Debts that are owed to creditors. Eg. Notes payable, accounts payable.
Equity = The owner’s residual claim against the assets of the company. Owners withdrawal, Revenues
and expenses.
Owner’s capital = Owner contribution to the business
Revenue = Amounts earned from delivering goods and services to customers
Expenses = The cost of selling goods or services

#4 Use the accounting equation to analyze transactions
Transaction: Event of exchange, that can be measured in monetary units.
Accounts payable: A short-term liability that will be paid in the future.
Accounts receivable: The right to receive cash in the future from customers for goods sold or for
services performed.

#5 Prepare financial statements
1. Income statement:
Reports the net income or net loss of the business for a specific period.

, 2. Statement of owner’s equity:
Shows the changes in the owner’s capital account for a specific period.

3. Balance sheet:
Reports assets and claims to those assets at a specific point in time.

4. Statement of cash flows:
Reports on a business cash receipts and cash payments of a specific period.

,This is the explanation of what happened with the cash.

#6 Use financial statements and return on assets (ROA) to evaluate business performance
Return on assets (ROA) = Net income / Average total assets
Measures how profitably a company uses its assets.
- Average total assets = (Beginning total assets + ending total assets) / 2
! Important, and often used: Average = (Beginning + ending) / 2

Chapter 2 Recoding Business Transactions
#1 Explain accounts as they relate to the accounting equation and describe common accounts
Account = a detailed record of all increases and decreases that have occurred in a individual asset,
liability, or equity during a specific period.
Asset accounts: Cash, account receivable, notes receivable, prepaid expense, equipment, furniture,
fixtures, building , land.
Liability accounts: Accounts payable, notes payable, accrued liability (The company owes the amount
but the bill is not paid), unearned revenue (A liability when the business collects cash, but didn’t do
something yet).
Equity accounts: Capital, owner withdrawals & contribution, revenues, expenses.

#2 Define debits, credits and normal account balances using double-entry accounting and T-
accounts
Double Entry book-keeping: Every transaction changes as least two accounts.
T-Account: We record all our transactions in the T-account.

Debit: Left
Credit: Right
There are some rules:

,But for equity we have four different accounts.
1. Owners contribution, if owners contribution increases it is a credit.
2. Expenses increase, than it decreases the equity (debit).
3. Revenues, if it increases it increases equity (credit)
4. IF Owners withdrawal increases we debit it, because it decreases our Equity.
Just ask yourself the question: What is it doing with Equity?
Normal balance: The balance that appears on the increased side of an account.

#3 Record transactions in a journal and post journal entries to the ledger
Journal: A record of transactions in date order.
Posting: Transferring data from the journal to the ledger.
Additional rule: We always start first with the debit. (First what you got, than how you did it).

#4 prepare the trial balance and illustrate how to use the trial balance to prepare financial
statements
Trial balance: A list of all ledger accounts with their balances at a point in time.
This is an internal document, used only by employees of the company.
The balance sheet, on the other hand, is both for internal and external users.

What are we going to do now?
1. First, we prepare the Income statement - do we have a net income or a net loss?
2. Than we have the statement of owner’s Equity, which comes from the trial balance and the
income statement. (Owners contribution + net income – Withdrawal = owners capital)
3. We make the balance (financial situation on a date).

#5 Use the debt ratio to evaluate business performance
The debt ratio shows the proportion of assets financed with debts.
Debt ratio: Total liabilities / Total assets
Rule of thumb: < 60% is considered safe.

, Accounting Lecture 2 (CH3+4)
Chapter 3 The adjustment proces
#1 What is the difference between cash basis accounting and accrual basis accounting?
The difference is that cash basis is exactly what is paid etc., but big organizations needs to do it on
accrual basis. We dive into accrual basis. We have to record the expenses, that are made in a specific
period. Although we have already paid it, you have sometimes prepaid something.
Accrual basis accounting = Accounting method that records revenue when earned and expenses
when incurred.

#2 What principles apply?
You record revenue when you earned it. It doesn’t matter if you received cash.
The matching principle: You need to see if the expenses can be matched to particular earnings.

#3 What are adjusting entries and how do we record them?
- Never involve cash
- Either increase in revenue or increase in expense
- Accrued means the amount that must be recorded
4 types:

Prepaid expenses (prepaid rent, office supplies, plant assets)
For example, when you paid your rent in December – for 3 months. We have to show the rent
expense related to the December revenues.
Depreciation: The process of systematically recording the periodic usage of plant assets (Assets that
own the business, used in operation of the business, for a longer time) to generate revenues.
For example: Buildings, equipment, furniture and automobiles.
Accumulated depreciation Is a contra-asset: The sum of all the depreciation expense recorded to
date for a depreciable asset.
Contra account: An account that is paired with, and is listed immediately after its related account in
the chart of accounts and associated financial statement and whose normal balance is the opposite
of the normal balance of the related account.
Book value: A depreciable asset’s cost minus accumulated depreciation.

Accrued revenue
A revenue that has been earned but for which the cash has not yet been collected.

Unearned revenue
A liability created when a business collects cash from customers in advance of completing a service
or delivering a product. You receive cash, without yet delivering a service yet. We have to record the
revenues when we earn them.

Accrued expenses (salaries expense, interest expense)
This are expenses that still need to be paid.
Salaries payable is a liability.

#4 Explain the purpose of and prepare an adjusted trial balance
STEP 1. Enter the information of the unadjusted balance.
STEP 2. Enter the information for the adjusting journal entries into adjustment columns.
STEP 3. Cross-foot the numbers across the spreadsheet.

#5 Indentify the impact t of adjusting entries on the financial statements.
What happens if we do not adjust these accounts?

Dit zijn jouw voordelen als je samenvattingen koopt bij Stuvia:

Bewezen kwaliteit door reviews

Studenten hebben al meer dan 850.000 samenvattingen beoordeeld. Zo weet jij zeker dat je de beste keuze maakt!

In een paar klikken geregeld

Geen gedoe — betaal gewoon eenmalig met iDeal, creditcard of je Stuvia-tegoed en je bent klaar. Geen abonnement nodig.

Direct to-the-point

Studenten maken samenvattingen voor studenten. Dat betekent: actuele inhoud waar jij écht wat aan hebt. Geen overbodige details!

Veelgestelde vragen

Wat krijg ik als ik dit document koop?

Je krijgt een PDF, die direct beschikbaar is na je aankoop. Het gekochte document is altijd, overal en oneindig toegankelijk via je profiel.

Tevredenheidsgarantie: hoe werkt dat?

Onze tevredenheidsgarantie zorgt ervoor dat je altijd een studiedocument vindt dat goed bij je past. Je vult een formulier in en onze klantenservice regelt de rest.

Van wie koop ik deze samenvatting?

Stuvia is een marktplaats, je koop dit document dus niet van ons, maar van verkoper MariavanRoos. Stuvia faciliteert de betaling aan de verkoper.

Zit ik meteen vast aan een abonnement?

Nee, je koopt alleen deze samenvatting voor €2,99. Je zit daarna nergens aan vast.

Is Stuvia te vertrouwen?

4,6 sterren op Google & Trustpilot (+1000 reviews)

Afgelopen 30 dagen zijn er 68175 samenvattingen verkocht

Opgericht in 2010, al 15 jaar dé plek om samenvattingen te kopen

Begin nu gratis

Samenvatting

Accounting 2020 summary lectures book l MAN BCU 168

Document informatie

Onderwerpen

Gekoppeld boek

Meer samenvattingen voor studieboek

Geschreven voor

Verkoper

Ontvangen beoordelingen

Voorbeeld van de inhoud