Accounting 209 Financial Accounting

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Accounting 209Financial Accounting

• Spring 2001
• Review Session
• Wed., Jan. 24th, 2000

• Schedule
• General info
• About Me
• Tips and hints
• Intro to Accounting

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General Information
Andy Conti Office 402B Phone [phone] Email
ACCT209STA_at_cgsb.tamu.edu or andyacct209_at_hotmail.c
om Office hours MW 10-noon and by appointment R
eviews Wed 715-1100 or sooner, Heep 101
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About Me

• Texas Aggie Class of 2000
• Hometown Houston, TX
• B.B.A. in Accounting, May 01
• M.S. in Tax Consulting, May 01

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Review Sessions ARE

• Class supplement
• Review
• Homework
• Extra problems
• Practice problems
• Practice exams

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Review Sessions ARE NOT

• Class replacement
• Homework answer system
• Sufficient study time
• Non-participatory

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General Study Tips

• Do the homework
• Work extra problems
• Come to the review sessions
• KEEP UP!
• Try to get the Big Picture
• Ask questions, give feedback

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Specific 209 Tips

• Spend lots of time on Chapter 4
• Terminology is key
• Chs. 6 - 10 are details of Ch. 4
• Ch. 13 is usually hardest
• Plan a full week for each Practice Problem
• Plan 3 days for each major exam

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The Big Picture
Accounting
Opportunities arise
Accounting
Evaluation/ Reaction
Management responds
Stuff happens
Accounting
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The Big Picture
Chs. 6-8
Chs. 8-9
Ch. 10
Ch. 13
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Assets
An asset is a probable future economic benefit
obtained or controlled by a particular entity as
a result of
past transactions or events.

• Keyword own
• Short term vs. long term
• Tangible vs. intangible

Examples cash, A/R, building, equipment,
patents, prepaid expenses
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Liabilities
A liability is a probable future sacrifice of e
conomic benefits arising from present obligations
of a particular entity to transfer assets
or provide services to other entities in the
future as a result of past transactions or events
.

• Keyword owe
• Short-term vs. long-term

Examples unearned revenue, A/P, bonds payable,
accrued interest
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Equity
Also referred to as net worth or capital, equit
y represents the claims against the assets by the
owners of the business.

• Keyword residual
• Two parts (for a corporation)
• Stock
• Retained Earnings
• a.k.a. Capital

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Revenue

• Keyword earned
• Earned when firm has done its part
• Cash receipt irrelevant
• See page 4-5

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Expense

• Keyword incurred
• Expense incurred when thing used up
• have already received benefit
• Cash payment irrelevant
• See page 4-5

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Financial Statements

• Balance Sheet
• Statement of financial position
• Point in time
• Assets Liabilities Owners Equity
• Income Statement
• Statement of activities
• Over the period
• Revenues - Expenses Net Income

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Balance Sheet Assets Liabilities Equity
Income Statement Revenues - Expenses Net Inco
me
Statement of Cash Flows Cash inflows - Cash outf
lows Change
in cash
Statement of Equity Beginning Invest. NI -
Dividends - NL
Ending