ACCT 201

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ACCT 201
2013-12-18 22:47:10
ACCT201 UWEC Fall2013

ACCT 201 Final
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  1. Sole Proprietorships
    Business owned by one person
  2. Partnership
    Business owned by 2 or more persons associated as partners
  3. Corporations
    A business organized as a separate legal entity owned by stockholders.
  4. Internal Users
    Managers who plan, run, and organize a business. (Marketing Managers, Producing Supervisors, Finance Directors, Company Officers)
  5. External Users
    Use accounting information to buy, hold or sell stock. (Investors, Creditors)
  6. Income Statement
    • Reports revenues, expenses and in turn net income (gain/loss)
    • For Month Ended
  7. Retained Earnings Statement
    • Shows amounts and causes for changes in retained earnings
    • For Month Ended
  8. Balance Sheet
    • Reports assets and claims to assets. A=L+SE
    • Specific Date (October 31, 2013)
  9. Statement of Cash Flows
    • Provides financial information about cash receipts and cash payments. (Operating, investing, financing activities)
    • For Month Ended
  10. Define how the Income Statement, Retained Earnings Statement, Balance Sheet, and Statement of Cash Flows are interrelated.
  11. Asset
    Resource owned by a business
  12. Liability
    Amounts owed to creditors in the form of debts and other obligations.
  13. Stockholders Equity
    • Owner's claim to assets.
    • Common Stock, Ret Earn
  14. Basic Accounting Equation
    Assets = Liabilities + Stockholder's Equity
  15. Generally Accepted Accounting Principles (GAAP)
    United States system of accounting principles.
  16. GAAP Assumption: Accounting Entity
    Assumes that the business is separate from its owners or other businesses.
  17. GAAP Assumption: Going Concern
    • Assumes the business will be in operation indefinitely. Validates methods of asset capitalization, depreciation, and amortization.
    • Not Applicable if: liquidation is certain
  18. GAAP Assumptions: Monetary Unit Principle
    Assumes a stable currency is going to be the unit of record.
  19. GAAP Assumptions: Time Period Principle
    Economic activities of an enterprise can be divided into artificial time periods.