ACC290 Class Discussions
Chp1. Q1 – What are the four basic financial statements and what do they tell you about a company? What is the primary purpose of each of the four basic financial statements? In your opinion, which financial statement is the most important? Explain why. How the four basic financial statements are interrelated?
Chp1. Q2 – List some examples of internal or external users of financial statements. Pick one and describe how that person or department would use a specific financial statement. You can also share an example from your work experience.
Chp1. Q3 – The Balance Sheet is made up of Assets, Liabilities and Equity accounts. The Balance Sheet follows the Accounting Equation: Assets = Liabilities + Owners’ Equity. Can you provide some examples of Asset, Liability and Equity accounts?
Chp 2. Q4 – Financial reporting follows a set of accounting standards known as U.S. GAAP (Generally Accepted Accounting Principles.) Under GAAP, there are important Principles/Assumptions that are used: Economic Entity Assumption, Monetary Unit Assumption, Time Period Assumption, Cost Principle, Full Disclosure Principle, Going Concern Principle, Matching Principle, Revenue Recognition Principle, Materiality, Conservatism, Consistency, Comparability, and Reliable Verifiable and Objective. Describe one of the principles/assumptions and explain why it is important for all companies who follow U.S. GAAP.
Chp 3. Q5 – What do you think of when you hear the word debit? What do you think of when you hear the word credit?
When we speak about debits and credits in accounting, we are not referring to debit cards, credit cards or the debits and credits found on your personal bank statement
What does our textbook say about debits and credits? Suppose a company earns $200 in services revenue. In this transaction, cash increases and services revenue increases. How would you journalize this transaction?
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Chp1. Q1
The first financial statement is the balance sheet is used to show the economic resources a company owns and also the debts it owes other people or businesses. This tells about the financial health of the company. The second is the income statement. This shows the ability of a company to sell goods more and get profit while the cost of making them and selling them are deducted. The third is the statement of retained earnings. This basically shows the amount of income that was being reinvested into the business…..
APA
644 words
