acc 1000
midterm 1
overview
This is your review session!
-There are no dumb questions
-please sign in
-topics range from chp. 1-3
agenda
- quick review
- questions from the AUDIENCE
- Individual questions
income statement
balance sheet
Transaction Analysis
income is earned
exepenses are incurred
RECEIVING AND PAYING CASH
DOES NOT ALWAYS MEAN A REVENUE OR EXPENSE!
Transaction Analysis
Example 1:
store
customer
yes
revenue
Transaction Analysis
Example 2:
worker
customer
not revenue
Transaction Analysis
Example 3:
employee
store owner
yes
expense
matching principle
-
Assets, ppe: $5000
-
LIABILITIES, std: $5000
matching principle
-
Assets, ppe: $5000
-
assets, cash: ($5000)
adjustments
1. Never recorded in cash column
2. Always recorded in Retained Earnings