tailieunhanh - Lecture Intermediate accounting (4/e): Chapter 2 - Spiceland, Sepe, Tomassini

Chapter 2 - Review of the accounting process. The purpose of this chapter is to review the fundamental accounting process used to produce the financial statements. This review establishes a framework for the study of the concepts covered in intermediate accounting. Actual accounting systems differ significantly from company to company. This chapter focuses on the many features that tend to be common to any accounting system. | Review of the Accounting Process 2 Insert Book Cover Picture Chapter 2: Review of the Accounting Process The Basic Model Economic events cause changes in the financial position of a company. External events involve an exchange between the company and another entity. Internal events do not involve an exchange transaction but do affect the company’s financial position. The first objective of any accounting system is to identify the economic events that can be expressed in financial terms by the system. Economic events cause changes in the financial position of a company. External events involve an exchange between the company and another entity. Examples are purchasing merchandise inventory for cash and borrowing cash from a bank. Internal events do not involve an exchange transaction but do affect the company’s financial position. Examples are the depreciation of machinery and the use of supplies. Learning Objectives Analyze routine economic events—transactions—and record their effects on a company’s financial position using the accounting equation format. LO1 Our first learning objective in Chapter 2 is to analyze routine economic events—transactions—and record their effects on a company’s financial position using the accounting equation format. The Accounting Equation A = L + OE - Owner Withdrawals + Owner Investments - Expenses - Losses + Revenue + Gains The accounting equation underlies the process used to capture the effects of economic events. Assets equal liabilities plus owners’ equity. Each event, or transaction, has a dual effect on the accounting equation. Accounting Equation for a Corporation A = L + SE + Retained Earnings + Paid-in Capital - Expenses - Losses + Revenues + Gains - Dividends Owners’ equity for a corporation, called shareholders’ equity, is classified by source as either paid-in capital or retained earnings. Retained earnings equals net income less distributions to shareholders (primarily dividends) since the inception of the corporation. | Review of the Accounting Process 2 Insert Book Cover Picture Chapter 2: Review of the Accounting Process The Basic Model Economic events cause changes in the financial position of a company. External events involve an exchange between the company and another entity. Internal events do not involve an exchange transaction but do affect the company’s financial position. The first objective of any accounting system is to identify the economic events that can be expressed in financial terms by the system. Economic events cause changes in the financial position of a company. External events involve an exchange between the company and another entity. Examples are purchasing merchandise inventory for cash and borrowing cash from a bank. Internal events do not involve an exchange transaction but do affect the company’s financial position. Examples are the depreciation of machinery and the use of supplies. Learning Objectives Analyze routine economic events—transactions—and record their effects

• Kế toán - Kiểm toán
• Intermediate accounting
• Lecture Intermediate accounting
• Financial Accounting
• Accounting process
• Accounting equation
• Accounting processing cycle
• Stock issuance
• Estimating reserves
• Liquidating dividends
• Accounting changes
• Error corrections
• Accounting choices
• Theoretical structure
• Accrual accounting
• Financial accounting environment
• Accounting for leases
• Leasing environment
• Accounting by lessee
• Special accounting problems
• Cash versus accrual accounting
• International standard setting
• Accounting standards
• Accounting assists
• The challenges facing accounting
• Income taxes
• Accounting for income taxes
• Deferred tax liabilities
• Error analysis
• Accounting policy
• Accounting estimate
• Accounting policies
• Financial reporting
• Accounting information system
• Measurement issues
• Characteristics of accounting
• Capital allocation process