FA_Session_1-3_PDF(2).pdf

Financial ACCOUNTING LEARNING OUTCOMES After reading this module, the learner should be able to: Illustrate what accounting is. Differentiate the users and uses of accounting. Evaluate why ethics is a fundamental business concept. Analyze the different accounting principles and as...

Financial ACCOUNTING LEARNING OUTCOMES After reading this module, the learner should be able to: Illustrate what accounting is. Differentiate the users and uses of accounting. Evaluate why ethics is a fundamental business concept. Analyze the different accounting principles and assumptions. Apply the accounting equation, and categorize its components. Analyze the effects of business transactions on the accounting equation. Evaluate the four financial statements and how they are prepared. OVERVIEW OPPORTUNITIES IN ACCOUNTING Beliefs that distinguish right from wrong ETHICS Accepted standards of good and bad behavior USERS OF ACCOUNTING DATA USERS OF ACCOUNTING DATA USERS OF ACCOUNTING DATA ACCOUNTING PRINCIPLES AND ASSUMPTIONS Generally Accepted Accounting Principles (GAAP) The set of guidelines and procedures that constitute acceptable accounting practice at a given time. ACCOUNTING PRINCIPLES AND ASSUMPTIONS ACCOUNTING PRINCIPLES AND ASSUMPTIONS ACCOUNTING PRINCIPLES AND ASSUMPTIONS OTHER UNDERLYING CONCEPTS OTHER UNDERLYING CONCEPTS OTHER UNDERLYING CONCEPTS OTHER UNDERLYING CONCEPTS OTHER UNDERLYING CONCEPTS FUNDAMENTAL QUALITATIVE CHARACTERISTICS make information useful to users FUNDAMENTAL QUALITATIVE CHARACTERISTICS ENHANCING QUALITATIVE CHARACTERISTICS enhance the usefulness of information FORMS OF BUSINESS ORGANIZATION FORMS OF BUSINESS ORGANIZATION FORMS OF BUSINESS ORGANIZATION activities in business organization financing activities are the methods an organization uses to obtain financial resources from financial markets and how it manages these resources activities in business organization INVESTING activities the use of capital to acquire other resources a company needs to operate activities in business organization OPERATING activities involve the use of resources to design, produce, distribute and market goods and services COMMUNICATING WITH USERS COMMUNICATING WITH USERS COMMUNICATING WITH USERS COMMUNICATING WITH USERS COMMUNICATING WITH USERS COMMUNICATING WITH USERS COMMUNICATING WITH USERS COMMUNICATING WITH USERS OTHER ELEMENTS OF AN ANNUAL REPORT OTHER ELEMENTS OF AN ANNUAL REPORT  THE BASIC ACCOUNTING EQUATION ASSETS ASSETS ASSETS LIABILITIES LIABILITIES EQUITY EQUITY EXPANDED ACCOUNTING EQUATION EXERCISES