Question

troduction to Accounting TG 2110: Financial Accounting f Debit (DR) . Credit (CR Accounting is... mune of Business- .. the the planning recording. interpreting, and analyzing of an entity's financial information. anǐntgonnt 2and,measuremor sy tem , that identifies, records, and communicates andCOlm Pearive bC information about an organization's business activities. (Pg. 4) Five (or 6) Accounting Elements: Financial Normal Define Examples Statement resources an entity that are expected to provide pses, equipment. current and future benefits creditors' claims on an organization's assets; amounts or controlled by leash, supples, fecerables, Assets inventory, prepaid Liabilities quity claim on the assets of a business gross increases in equity from business activities thatincome outflows or using up of assets as art of business operations to generate sales the Revenues Expenses to customers during Cost of Goods Sold the period Four Financial Statements: 1. Statement 2. Statement of -Owner 3. Sheet 4. Statement of 3 Business Activities:Activities Activities Activities ACCT 2110: Spring 2018 Sid C. Bundy

Answer 1

	Five (or 6) Accountig elements
		Define				Examples			Financial statement	Normal balance
	Assets	resources owned or controlled by				Cash,supplies,receivables			Balance sheet	DR
		an entity that are expected to provide				Inventory,prepaid expenses
		current and future beefits				equipment
	Liabilities	Creditor's claim o an organization's				Accounts payable			Balance sheet	CR
		assets; amounts to probable future				Salaries payable
		payment				Insurance payable
						Notes payable
						Bond payable
						Bank loan payable
	Equity	Owner's claim on the assets of a				Owner's capital			Balance sheet	CR
		business				Owner's drawings
						Retaied earnigs
						Common stock
						Preferred stock
	Revenues	gross increases in equity from business				Sales revenue			Income statement	CR
		activities that earns income				Service revenue
						Interest income
	Cost of goods sold	the cost of acquiring or manufacturing				Cost of goods sold			Income statement	DR
		the products that sold to customers
		durig the period
	Four financial statements:
1	Income statement
	Revenues-Expeses=Net income
2	Statement of Owner's equity
	Beginning balance+Owner contributions+Net income-Owner draws-Net loss
3	Balance sheet
	Assets=Liabilities+Owner's equity
4	Statemet of cashflow
	3 Business activities:		Operating	Activities
			Investing	Activities
			Financing	Activities