1. AC113 Accounting for Non-Accounting Majors Seminar: Unit 2
Emil Koren, CPA, MBA

2. Welcome Introduction Accounting definitions Basic accounting terms
Accounting statements
Accounting acronyms
Assignment E1-5
Assignment E1-21

3. Introductions Please read Chapter 1
Review the PowerPoint presentation that is included in the Unit 2
Read and study the Vocabulary for this Unit
Post to the Discussion question
Do the Assignment
Take the Quiz

4. Accounting definitions
An information system that provides reports to stakeholders about the economic activities and condition of a business.
Accounting equation
Assets = Liabilities + Stockholders’ Equity

5. Basic accounting terms
Assets
The resources owned by a business.
Liabilities
The rights of creditors that represent a legal obligation to repay an amount borrowed according to terms of the borrowing agreement.
Stockholders’ equity
The stockholders’ rights to the assets of a business.

6. More Basic accounting terms
Revenue
The increase in assets from selling products or services to customers.
Expenses
Costs used to earn revenues.
Net income
The excess of revenues over expenses.
Net loss
The excess of expenses over revenues.
Dividends
Distributions of the earnings of a corporation to its stockholders.

7. Accounting statements
Income statement
A summary of the revenue and expenses for a specific period of time, such as a month or a year.
Retained earnings statement
A summary of the changes in the retained earnings of a corporation for a specific period of time, such as a month or a year.
Balance sheet
A list of the assets, liabilities, and owner’s equity as of a specific date, usually at the close of the last day of a month or a year.
Statement of cash flows
A summary of the cash receipts and cash payments for a specific period of time, such as a month or a year.

8. Accounting acronyms GAAP FASB SEC IASB
Generally Accepted Accounting Principles
FASB
Financial Accounting Standards Board
SEC
Securities and Exchange Commission
IASB
International Accounting Standards Bard

9. Assignment E1-5 Determine the missing Amounts
Assets = Liabilities + Stockholders’ Equity
X = $35, $60,000
$80,000 = X $35,000
$675,000= $227, X

10. Assignment E1-5 Determine the missing Amounts
Assets = Liabilities + Stockholders’ Equity
$95,000 = $35, $60,000
$80,000 = $45, $35,000
$675,000= $227, $448,000

11. Assignment E1-21 Situation 1 Situation 2 Situation 3 Situation 4

12. Assignment E1-21 Situation 1 The Income Statement
Situation 2 The Statement of Cash Flows
Situation 3 The Balance Sheet
Situation 4 The Income Statement
Situation 5 The Statement of Cash Flows

13. Questions and Comments?