1. Welcome to Introduction To Accounting, ACNT 1303 Course # 17039
Atef Abuelaish

2. Instructor Name : Atef Abuelaish
Married with 3 kids, Born in Cairo/Egypt.
Like traveling, Reading, and Sports activities.
Master of Science in Accounting, Kaplan University [3.92 GPA; Highest honor].
Bachelor degree in accounting, Cairo/Egypt and diploma in accounting applied science, HCC [3.85 GPA ; highest honor].
Atef Abuelaish

3. Instructor Name : Atef Abuelaish
Accreditation council for accountancy & Taxation [ATP # ].
Accountant with long experiences with domestic and international companies.
Master Tax Advisor, Enrolled Agent.
Working with HR Block for 10 years.
CPA Candidate [Passed REG & BEC]
Atef Abuelaish

4. Contact Me Email address: atef.abuelaish1@hccs.edu Cell # 832-474-1118
Online
McGraw – Hill’s Connect
All Course materials under the course name and number.
Atef Abuelaish

5. Accounting: The Language of Business
Meet
NO.
Dates
Chapter
Topic
Homework Assignment 1
08/23
Accounting: The Language of Business 2
08/25
Using Connect – 10 Questions & LS for 20 Points. 3
08/30
Analyzing Business Transactions 4
09/01
Using Connect – 4 Questions & LS for 30 Points. 5
09/06
Analyzing Business Transactions Using T Accounts 6
09/08
Using Connect – 5 Questions & LS for 50 Points. 7
09/13
Quiz # 1 CH
Using Connect – 8 Questions for 25 Points.
Atef Abuelaish

6. The General Journal and The General Ledger 9 09/20
Meet
NO.
Dates
Chapter
Topic
Homework Assignment 8
09/15 4
The General Journal and The General Ledger 9
09/20
Using Connect – 3 Questions & LS for 50 Points. 10
09/22
REV. / EXAM 1
EXAM $ 01 CH 1 - 3
Using Connect – 14 Questions for 50 Points. 11
09/27 5
Adjustments and Worksheet
Using Connect – 4 Questions & LS for 50 Points. 12
09/29
Using Connect – 10 Questions for 25 Points.
Quiz # 2 CH 13
10/04 6
Closing Entities and The Postclosing Trial Balance 14
10/06
Using Connect – 5 Questions & LS for 50 Points.
Atef Abuelaish

7. Using Connect – 30 Questions for 90 Points.
Meet
NO.
Dates
Chapter
Topic
Homework Assignment 15
10/11 MT
MID TERM EXAM CH 1 - 5
Using Connect – 30 Questions for 90 Points. 16
10/13 7
Accounting for Sales, Accounts Receivable, and Cash Receipts 17
10/18
Using Connect – 6 Questions & LS for 50 Points. 18
10/20 8
Accounting for Purchases, Accounts Payable, and Cash Payments
Using Connect – 5 Questions & LS for 50 Points. 19
10/25
Using Connect – 15 Questions for 25 Points.
Quiz # 3 CH 20
10/27 9
Cash 21
11/01
Atef Abuelaish

8. Payroll Computations, Records, and Payment
Meet
NO.
Dates
Chapter
Topic
Homework Assignment 22
11/03 10
Payroll Computations, Records, and Payment 23
11/08
Using Connect – 7 Questions & LS for 50 Points. 24
11/10
REV. / EXAM 2
EXAM # 2 CH 6 - 8
Using Connect – 15 Questions for 50 Points. 25
11/015 11
Payroll Taxes, Deposits, and Reports 26
11/17 27
11/22 12
Accruals and The Worksheet
Using Connect – 4 Questions & LS for 50 Points. 28
11/24
NO CLASS
THANKSGIVING HOLIDAY
Atef Abuelaish

9. Accruals and The Worksheet Using Connect – 10 Questions for 25 Points.
Meet
NO.
Dates
Chapter
Topic
Homework Assignment 29
11/29 12
Accruals and The Worksheet
Using Connect – 10 Questions for 25 Points.
Quiz # 4 CH 30
12/01 13
Financial Statements and Closing Procedures 31
12/06
Using Connect – 3 Questions & LS for 50 Points. 32
12/08
FINAL
COURSE FINAL EXAM
Chapters 01 TO 13
Using Connect – 31 Questions for 100 Points.
in class from 8 to 11 AM
Atef Abuelaish

10. Evaluation Requirements
Homework – At Home Points
2 Exams – In class Points
Mid-Term Exam - in class Points
4 Quizzes - In class Points
Final Exam – In Class Points
Final Course Survey Points
Grand Total points
Atef Abuelaish

11. HCC Grading Scale 90 – 100% = A 900 –1000 points
80 – 89% = B – 899 points
70 – 79% = C – 799 points
60 – 69% = D – 699 points
BELOW 60% = F – 599 points
Atef Abuelaish

12. COURSE PLAN
Syllabus: Service to direct the activities that all of us must undertake to move everyone from where he/she is, to where he/she wants to be.
All course materials on “Connect Website.”
Atef Abuelaish

13. Atef Abuelaish

14. Accounting: The Language of Business
Section 1: What Is Accounting?
Section Objectives
1-1 Define accounting.
1-2 Identify and discuss career opportunities in accounting.
1-3 Identify the users of financial information.
Chapter one introduces us to accounting.
This first section of the chapter describes how accounting rules are created. The chapter also discusses the various career opportunities in accounting and identifies the users of financial information.
Atef Abuelaish

15. In running a business, you need answers to questions:
How much cash does the business have?
How much money do customers owe the business?
What is the cost of the merchandise sold?
What is the change in sales volume?
How much money is owed to suppliers?
There is a strong need for financial accounting information. Businesses need answers to many questions. Take a moment and review the questions above. All of them can be answered with accurate accounting information.
What is the profit or loss?
Atef Abuelaish

16. Define Accounting What is accounting?
QUESTION:
What is accounting?
ANSWER:
Accounting is the process by which financial information about a business is classified, recorded, summarized, interpreted, and communicated to owners, managers and other interested parties.
In order to obtain the answers to the previous questions, a business needs a properly designed accounting system. An accounting information system records, classifies, summarizes, interprets and then communicates financial transactions and information to owners, managers and other interested parties.
Atef Abuelaish

17. What are financial statements?
QUESTION:
What are financial statements?
ANSWER:
Financial statements are periodic reports of a firm’s financial position and operating results.
Without financial statements, managers, owners and other interested parties would not be able to make important business-related decisions. Owners, managers, and other stakeholders obtain a lot of information from financial statements.
Atef Abuelaish

18. Identify and discuss career opportunities in accounting
Many jobs are available in the accounting profession. Some examples are:
Bookkeepers & Accounting Clerks
Financial Analysts
Let’s talk about career opportunities in accounting. Many jobs are available in the accounting profession and they require varying amounts of education and experience.
Bookkeeping, accounting, and auditing clerks produce financial records for organizations. There is usually very little experience required for these opening level positions. Occupations that require at least a Bachelor’s Degree and have job duties similar to those of accountants and auditors include budget analysts, cost estimators, financial analysts, financial examiners, financial managers, management analysts, personal financial advisors, tax examiners, and other executors. There are other career opportunities as well. Starting salaries and work hours for a variety of positions can be found at the Bureau of Labor Statistics.
Financial
Managers
Atef Abuelaish

19. Accountants generally work in one of these areas:
Public accounting
Managerial accounting
Governmental accounting
Accountants usually choose to practice in one of three areas: Public accounting, managerial accounting or governmental accounting.
Atef Abuelaish

20. Public accounting firms provide services such as:
Auditing
Tax accounting
Management advisory services
Public accounting firms provide accounting services for other companies. Usually they offer three services: auditing, tax accounting, and management advisory services.
Atef Abuelaish

21. Who is a certified public accountant?
QUESTION:
Who is a certified public accountant?
ANSWER:
A certified public accountant, or CPA, is an independent accountant who provides accounting services to the public for a fee.
Many public accountants are certified public accountants or CPAs.
Atef Abuelaish

22. What is managerial accounting?
QUESTION:
What is managerial accounting?
ANSWER:
Managerial accounting includes a wide range of work carried on by an accountant employed by a single business in industry.
Managerial accounting, also referred to as private accounting, involves working for a single business in industry. Many managerial accountants become CMAs (Certified Management Accountants).
Atef Abuelaish

23. Establish accounting policies Provide financial advice to management
Managerial Accounting, or private accounting, involves working for a single business to:
Establish accounting policies
Provide financial advice to management
Manage the accounting system
Prepare and interpret financial statements
Prepare tax forms and do tax planning
Prepare internal reports for management
Managerial accountants perform a wide range of activities including establishing accounting policies, providing financial advice to management, preparing tax forms and preparing internal reports for management.
Atef Abuelaish

24. What is governmental accounting?
QUESTION:
What is governmental accounting?
ANSWER:
Governmental accounting involves keeping financial records and preparing financial reports for a federal, state, or local governmental unit.
Governmental accounting involves keeping financial records and preparing financial reports as part of the staff of federal, state, or local governmental units. Governmental units do not earn profits.
Atef Abuelaish

25. Securities and Exchange Commission (SEC)
Governmental accounting involves keeping financial records and preparing financial reports as part of the staff of federal, state, or local governmental units, such as:
Securities and Exchange Commission (SEC)
Internal Revenue Service (IRS)
Federal Bureau of Investigation (FBI)
Homeland Security (DHS)
Some governmental agencies hire accountants to audit the financial statements and records of the businesses under their jurisdiction and to uncover possible violations of the law. The Securities and Exchange Commission, the Internal Revenue Service, the Federal Bureau of Investigation, and the Homeland Security employ a large number of accountants.
Atef Abuelaish

26. Identify the users of financial information
Inside The Business
Outside The Business
Employees
Financial Reports
It’s important that we identify the users of accounting information. The results of the accounting process are communicated to many individuals and organizations. Inside users of financial information include: owners and managers who need information that will help them evaluate the results of their operations and plan and make decisions for the future. Additionally, many users outside the business including the IRS, suppliers, banks and customers, as well as regulatory agencies are also interested in the financial position of a business.
Atef Abuelaish

27. Use financial information to:
Suppliers
Use financial information to:
Assess the firm’s ability to pay its bills
Set a credit limit for the firm
Suppliers need to be able to assess the ability of a business to pay its bills.
Atef Abuelaish

28. Banks Use financial information to: Decide whether to make a loan
Determine the terms of the loan
Banks use financial information to decide whether to make loans and the terms of any loans granted.
Atef Abuelaish

29. Use financial information to determine the tax base for:
Tax Authorities
Use financial information to determine the tax base for:
Income taxes
Sales taxes
Property taxes
The Internal Revenue Service (IRS) and other state and local tax authorities are interested in the financial information of a business.
Atef Abuelaish

30. Regulatory Agencies and Investors
The Securities and Exchange Commission (SEC) is the federal agency that oversees the financial information of public corporations.
Public corporations are those whose stock is traded on stock exchanges and over-the-counter markets.
Regulatory Agencies
and Investors
If an industry is regulated by a governmental agency, businesses in that industry have to supply financial information to the regulating agency. The SEC enforces security laws and protects against infractions like insider trading, accounting fraud, and companies which provide misleading information about their financial condition.
Atef Abuelaish

31. Sarbanes-Oxley Act
The Act led to a major change in the regulatory environment.
The Act was designed as a regulatory crackdown on corporate fraud and corruption.
Major changes occurred in the regulatory environment in the accounting profession with the passage of the Public Company Accounting Reform and Investor Protection Act of 2002 (also known as the Sarbanes-Oxley Act). The Act was the most far-reaching regulatory crackdown on corporate fraud and corruption since the creation of the Securities and Exchange Commission in One of the purposes of the legislation was to restore public confidence in financial statements and markets and change the regulatory environment in which accountants operate.
Atef Abuelaish

32. Use financial information to:
Customers
Use financial information to:
Determine the economic health of the business
Determine the likelihood that the firm will remain in business to provide parts, service, and support
Customers pay special attention to financial information about the firms with which they do business.
Atef Abuelaish

33. Use financial information to:
Employees and Unions
Use financial information to:
Negotiate wages and benefits
Monitor profitability of profit-sharing plans
Employees are also interested in the financial information of the business that employs them whether it is due to job security, profit sharing plans or union negotiations if they happen to be members of a labor union.
Atef Abuelaish

34. Accounting: The Language of Business
Section 2: Business and Accounting
Section Objectives
In section 2 of the chapter, the three types of businesses: sole proprietorships, corporations and partnerships are discussed. We will also discuss the process used to develop generally accepted accounting principles.
1-4 Compare and contrast the three types of business entities.
1-5 Describe the process used to develop generally accepted accounting principles.
Atef Abuelaish

35. Three major legal forms of a business entity:
Compare and contrast the three types of business entities
Three major legal forms of a business entity:
Sole Proprietorship
Partnership
The three major legal forms of a business entity are the sole proprietorship, the partnership, and the corporation. In general, the accounting process is the same for all three forms of business.
Corporation
Atef Abuelaish

36. What is a sole proprietorship?
QUESTION:
What is a sole proprietorship?
ANSWER:
A sole proprietorship is a business entity owned by one person who is legally responsible for the debts and taxes of the business.
A sole proprietorship is a business entity owned by one person. The life of the business ends when the owner is no longer willing or able to keep the business going. Many small businesses are operated as sole proprietorships.
Atef Abuelaish

37. Partnership Sole Proprietorship
Corporation
Ownership
1 owner
Ends when owner:
is unable to
carry on,
dies, or
closes the firm
Life
Responsibility for business debts if firm is unable to pay
Owner
The owner of a sole proprietorship is legally responsible for the debts and taxes of the business. If the business is unable to pay its debts, the creditors can turn to the owner for payment.
Atef Abuelaish

38. QUESTION:
What is a partnership?
A partnership is a business entity owned by two or more people who are legally responsible for the debts and taxes of the business.
ANSWER:
A partnership is a business entity owned by two or more people who are legally responsible for the debts and taxes of the business.
Atef Abuelaish

39. Partnership Sole Proprietorship
Corporation
Ownership
1 owner
Ends when owner:
is unable to
carry on,
dies, or
closes the firm
Life
Responsibility for business debts if firm is unable to pay
Owner
2 or more owners
Ends when partner(s):
withdraws,
Partners individually and jointly
The partners in a partnership choose how to share the ownership and profits of the business. When a partner leaves, the partnership is dissolved and a new partnership may be formed with the remaining partners. Partners are individually, and jointly as a group, responsible for the debts and taxes of the partnership.
Atef Abuelaish

40. Professional services such as:
Typical partnerships
Medical Practices
Professional services such as:
Accounting Firms
Dental Practices
The partnership structure is common in businesses that offer professional services, such as law firms, accounting firms, architectural firms, medical practices, and dental practices.
Architectural Firms
Law Firms
Atef Abuelaish

41. Partners must agree upon:
Amount each partner will contribute to the business.
Percentage of ownership of each partner.
Share of profits of each partner.
Duties each partner will perform.
Debts - the responsibility each partner has for the partnership’s debts.
At the beginning of the partnership, two or more individuals enter into a contract that details the rights, obligations, and limitations of each partner, including: the amount each partner will contribute to the business, each partner’s percentage of ownership, each partner’s share of the profits, the duties each partner will perform, the responsibility each partner has for the amounts owed by the business to creditors and tax authorities.
Atef Abuelaish

42. QUESTION:
What is a corporation?
ANSWER:
A corporation is a publicly or privately owned business entity that is separate from its owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business.
Corporations are different from sole proprietorships and partnerships. A corporation is a separate legal entity.
Atef Abuelaish

43. Partnership Sole Proprietorship
Corporation
Ownership
1 owner
Ends when owner:
is unable to
carry on,
dies, or
closes the firm
Life
Responsibility for business debts if firm is unable to pay
Owner
2 or more
Ends when partner(s):
dies,
close the firm
withdraws
Partners individually and jointly
Can be one or thousands
Continues indefinitely; ends when:
business goes bankrupt
stockholders vote to liquidate
Stockholders can lose only the amount invested
A corporation may have one owner or thousands of owners. Ownership of a corporation is acquired by buying shares of its stock. One of the advantages of the corporate form of business is the indefinite life of the corporation because a corporation does not end when ownership changes. Corporate owners, called stockholders or shareholders, are not personally responsible for the debts or taxes of the corporation.
Atef Abuelaish

44. QUESTION:
What is stock?
ANSWER:
Stock is issued in the form of stock certificates, and represents the ownership of the corporation.
Corporations may be privately or publicly owned. Stock ownership of privately owned corporations is limited to specific individuals, usually family members. In contrast, stock of publicly owned corporations is bought and sold on stock exchanges and in over-the-counter markets.
If you own common stock in a corporation, then as an owner, you have the right to vote at stockholder (owner) meetings. If the corporation is unable to pay its bills, the most stockholders can lose is their investment in the stock.
An owner’s share of the corporation is determined by the number of shares of stock held by the owner compared to the total number of shares issued by the corporation. Most large corporations have issued (sold) millions of shares of stock.
Atef Abuelaish

45. Important Distinction
For accounting purposes, all forms of business entities are considered separate entities.
However, the corporation is the only form of business that is a separate legal entity.
In the eyes of the law, a corporation is an artificial person—a separate legal entity. It has the legal right to own property and do business in its own name. It is important that whatever form a business takes, whether it is a corporation, a partnership or a sole proprietorship, that its financial records and transactions are kept separately from its owner’s personal transactions.
Atef Abuelaish

46. What is the separate entity assumption?
QUESTION:
What is the separate entity assumption?
ANSWER:
The separate entity assumption is the concept of keeping a firm’s financial records separate from the owner’s personal financial records.
It is important that whatever form a business takes, whether it is a corporation, a partnership or a sole proprietorship, that its financial records and transactions are kept separately from its owners.
If a person owns three separate businesses, he or she will keep four sets of financial records---one for each of the three businesses and one set for his/her own personal financial transactions.
Atef Abuelaish

47. What are generally accepted accounting principles (GAAP)?
Describe the process used to develop generally accepted accounting principles
QUESTION:
What are generally accepted accounting
principles (GAAP)?
ANSWER:
Generally accepted accounting principles (GAAP) are accounting standards developed and applied by professional accountants.
The last objective of this chapter deals with the rules that accountants use in recording financial transactions. Generally accepted accounting principles, or GAAP, are standards developed and applied by professional accountants.
New principles continue to be developed by the accounting profession as the need arises.
Generally accepted accounting principles must be followed by publicly owned companies in recording financial transactions unless they can show that doing so would produce information that is misleading to financial statement users.
Accounting principles vary from country to country. International accounting is the study of accounting principles used by different countries. The International Accounting Standards Board (IASB) deals with issues caused by the lack of uniform accounting principles.
Atef Abuelaish

48. What is an auditor’s report?
QUESTION:
What is an auditor’s report?
ANSWER:
An auditor’s report accompanies an independent accountant’s audit or review of a firm’s financial statements.
The financial statements of publicly traded companies are audited by independent certified public accountants (CPAs). The auditor’s report contains the auditor’s opinion about the fair presentation of the operating results and financial position of the business.
Atef Abuelaish

49. Happiness is having all homework up to date
Homework assignment
Using Connect – 10 Questions for 20 Points for Chapter 01.
Log in Connect web site and do “Connect Orientation” for 10 Points
Prepare chapter 2 “Analyzing Business Transactions.”
Happiness is having all homework up to date
Atef Abuelaish

50. Thank you and See You Next Week at the Same Time, Take Care
Atef Abuelaish