Accounting by Brock Baker https://padlet.com/brockbaker02/ev3ndmvp9s3x en-us 2016-04-19 16:47:36 UTC 2016-04-19 17:17:22 UTC hello@padlet.com 1. What is the basic accounting equation? brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106592180 The basic accounting equation, also called the balance sheet equation, represents the relationship between the assets, liabilities, and owner's equity of a business.]]> 2016-04-19 16:47:55 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106592180 2. What is the purpose of accounting? brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106592260 The purpose of accounting is to accumulate and report on financial information about the performance, financial position, and cash flows of a business.]]> 2016-04-19 16:48:14 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106592260 3. Define the term "assets".  Then, give one example of an asset. brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594219 An asset is an economic resource that a) can be owned, and b) is expected to provide future economic benefits. Example: Common asset categories include cashand cash equivalents.]]> 2016-04-19 16:55:21 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594219 4. Define the term "liabilities".  Then, give one example of a liability. brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594269  a liability is defined as the future sacrifices of economic benefits that the entity is obliged to make to other entities as a result of past transactions or other past events. Example: Any type of borrowing from persons or banks for improving a business or personal income that is payable during short or long time]]> 2016-04-19 16:55:30 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594269 5. Define "owner's equity".  Then, give one example of owner's equity. brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594306 Owner’s equity is the owner’s rights to the assets of the business. Examples of Equity recognized in the financial statements include the following:
  • Ordinary Share Capital
  • Preference Share Capital (irredeemable)
  • Retained Earnings
  • Revaluation Surpluses
]]> 2016-04-19 16:55:37 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594306 6. Define the term "debit" brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594363 an entry recording an amount owed, listed on the left-hand side or column of an account. The opposite of credit.]]> 2016-04-19 16:55:49 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594363 7. Define the term "credit" brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594401 an entry recording a sum received, listed on the right-hand side or column of an account. The opposite of debit.]]> 2016-04-19 16:55:57 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594401 8. Explain the purpose of a Balance Sheet. brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594458 Creditors and interested stock investors use the balance sheet to determine a company's financial standing because it lists what a company owns and what it owes. The balance sheet contains summarized information on a company's assets -- the things that it owns and its liabilities -- the debts it has.]]> 2016-04-19 16:56:08 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594458 9. Explain the purpose of an income Statement. brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594501 The purpose of an income statement is to assemble all the account information on revenues and expenses recorded during an accounting period and present them in the standard income-statement format.]]> 2016-04-19 16:56:16 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594501 10. Define Accounts Payable brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594552 Accounts payable is money owed by a business to its suppliers shown as a liability on a company's balance sheet. It is distinct from notes payable liabilities, which are debts created by formal legal instrument documents.]]> 2016-04-19 16:56:27 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594552 11. Define Accounts Receivables. brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594581
Money which is owed to a company by a customer for products and services provided on credit. This is often treated as a current asset on a balance sheet. A specific sale is generally only treated as an account receivable after the customer is sent an invoice.
]]> 2016-04-19 16:56:32 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106594581 Padlet for Accounting brockbaker02 https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106595275 By Brock Baker]]> 2016-04-19 16:58:35 UTC https://padlet.com/brockbaker02/ev3ndmvp9s3x/wish/106595275