SBE_A by xiuliliaofz

VIEWS: 1 PAGES: 28

									Financial Accounting for Small
           Business

         Introduction

  I hate you then I love you

    www.DrBaranes.com
  Dr. Amos Baranes PhD, CPA
      First Lecture - Introduction
• The nature of financial and managerial
  accounting information.
• The accounting profession and accounting
  careers.
• The fundamental accounting equation:
     Assets = Liabilities + Owners’ Equity.
• How transactions impact the fundamental
  accounting equation.
• The four core financial statements

                    Financial Accounting
                Dr. Amos Baranes PhD, CPA
                  I love you then I hate you




    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
       Accounting Information
• Complex information process
• Accounting is a set of concepts and
  techniques that are used to measure and report
  financial information about an economic unit.
  – Concepts and techniques
  – Measure
  – Financial
  – Economic Unit
  – To whom? Investors? Managers? Creditors?
    Analysts? Government? Employees?
                    Financial Accounting
                Dr. Amos Baranes PhD, CPA
  Financial vs. Managerial Accounting
• Financial accounting is concerned with
  external reporting of information to parties
  outside the firm.
  – External users
  – Standards
     • Financial Accounting Standards Board (FASB)  GAAP
     • International Accounting Standards Board (IASB)  IFRS

• Managerial accounting is primarily concerned
  with providing information for internal
  management.
  – Management.
  – specialized reports, budgets, product costing data…
  – No required standards

                            Financial Accounting
                        Dr. Amos Baranes PhD, CPA
     Topics that relate to Accounting
               Information
• Quality of Information System
  – TPS
  – MIS
  – EIS
• Inherent Limitation
  – Need to use estimates: Pension, Bad debt…
  – Market Value vs. Cost Value
  – Reliability vs. Relevancy

                     Financial Accounting
                 Dr. Amos Baranes PhD, CPA
     The fundamental accounting
        equation - Luca Pacioli
• The nucleus of that system is the notion that a
  business entity can be described as a collection
  of assets and the corresponding claims against
  those assets. The claims can be divided into
  the claims of creditors and owners
• Assets = Liabilities + Owners’ Equity
• Assets are the economic resources of the
  entity
• Liabilities are amounts owed to others
                    Financial Accounting
                Dr. Amos Baranes PhD, CPA
                  Equity - net assets
• Sole proprietorship
• Partnership
• Corporation
  – Liability
    • Limited
  – Type
    • Private
    • Public
  – Equity
    • Owner Investment
    • Retained Earnings
    • Dividends          Financial Accounting
                     Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
Income Statement




      Financial Accounting
  Dr. Amos Baranes PhD, CPA
Statement of cash flow




        Financial Accounting
    Dr. Amos Baranes PhD, CPA
    Financial Accounting
Dr. Amos Baranes PhD, CPA
     END
Thanks For Participation



         Financial Accounting
     Dr. Amos Baranes PhD, CPA

								
To top