...2011 by University of Phoenix. All rights reserved. Course Description This course introduces accounting concepts in a business environment. Students learn to create and apply accounting documents in making better business decisions. Other topics include plant assets, liabilities, accounting for corporations, investments, statements of cash flows, financial statement analysis, time value of money, payroll accounting, and other significant liabilities. Policies Faculty and students/learners will be held responsible for understanding and adhering to all policies contained within the following two documents: University policies: You must be logged into the student website to view this document. Instructor policies: This document is posted in the Course Materials forum. University policies are subject to change. Be sure to read the policies at the beginning of each class. Policies may be slightly different depending on the modality in which you attend class. If you have recently changed modalities, read the policies governing your current class modality. Course Materials Weygandt, J. J., Kimmel, P. D., & Kieso, D. E. (2010). Financial accounting (7th ed.). Hoboken, NJ: John Wiley & Sons. All electronic materials are available on the...
Words: 1761 - Pages: 8
...Financial Statement Differentiation – Individual Paper Mary Lou Gasca Accounting ACCT/561 March 18, 2013 Moises Rodriguez Financial Statement Differentiation – Individual Paper Financial statements are tools that people use to evaluate the potential of a business’ organization. There are four types of financial statements for two main types of users (internal and external), which is beneficial, depending on the type of business (sole proprietorship, partnership, and corporation). Regardless of the type of business, financial statements assist in making business decisions for internal and external users. Internal users are the business managers, owners, and an organization’s personnel who contribute to the operations of the business. External users are creditors, investors, and individuals of interest for the business (customers, for example). Financial statements also assist in identifying, depending on the nature of the business, an organization’s resources, profits, debts, business creditability, and financial health of business activities. The four types financial statements, which report financing, investing, and operating...
Words: 760 - Pages: 4
...Financial Statements In business there are many factors that make an organization a success or a failure. One of the major components in business is accounting and businesses need structure in sells, marketing, promotion or exposure, and a well develop product that society must consume. Looking at all these factors gives business owners a defined idea on how a company should be relevant and profitable in the business world. On the other hand, accounting is probably the most important aspects that need to be in place for a company to exist and make profits. Accounting is probably viewed in many ways but there is four basic elements in the financial statements. The following paragraphs would address the purpose of accounting, the four basic financial statements, relationships between internal and external users, and interrelation with each other. Definition of Accounting Accounting is a difficult task for many people, grasping the concepts of accounting can sometimes be intimidating. Nevertheless, the purpose or reasons accounting is so important are a matter survivability or failure in any organization. According to Weygandt (2008), accounting consists of three basic activities—it identifies, records, and communicates the economic events of an organization to interested users. On the other hand, “The process of preparing financial statement for any business is called financial accounting (Weygandt, 2008). Identification deals with daily transactions such as sells and purchases...
Words: 730 - Pages: 3
...Financial Statements ACC/280 July 23, 2011 Cary Schulz, Facilitator Financial Statements Accounting is a critical aspect of any organization; without accounting a business will not be successful. This paper will inform one of the purposes of accounting; the four basic financial statements; how the basic financial statements are interrelated; and why they are useful for managers, investors, creditors, and employees. Accounting is crucial for every business. Purpose of Accounting Accounting is the information system that records, identifies, and communicates an organization’s economic events to interested users (Weygandt, Kimmel, & Kieso, 2008). The definition of financial accounting is the field of accounting that treats money as a means of measuring an organization’s economic performance as opposed to a factor of production. This is comparable to cost accounting (Walden University, 2011). Financial accounting involves the entire system of controlling and monitoring money as it comes in and out of the organization as liabilities and assets; as well as revenues and expenses (Walden University, 2011). Financial accounting pulls together and summarizes the financial data to produce financial reports, such as a balance sheet and income statement for an organization’s investors, lenders, management, tax authorities, suppliers, and other stakeholders (Walden University, 2011). Financial accounting provides financial and economic data for creditors, investors, and...
Words: 844 - Pages: 4
...informative things regarding accounting. In week one we learned about the different forms of business organizations, the accounting environment, the accounting equation, and the four main financial statements. In week two we learned about debits and credits, the difference between cash, accrual basis accounting, and unearned and accrued revenue. In week three several topics were discussed including, accounting information and tools, the balance sheet, calculating profit and loss, cash control and assessing financial performance. In week four we covered internal controls and the Sarbanes-Oxley Act. We wrapped up the course discussing what motivates companies to invest. There was a great deal of information presented in this course especially considering it was crammed into a five week period. Week One The textbook started out by discussing the different forms of business organizations. Sole Proprietorships is a small business owned by a sole person. They are easy to set up and give the owner control over the business. Partnerships were then clarified by indicating that they are similar to a sole proprietorship except that two or more persons own the business. The chapter went on to describe corporations as a company that is organized as a separate legal entity with stockholders. It seems that the main deciding factors for selecting what form of business an owner should establish is dependent on the choice of wanting to pay less tax or be exposed to less liability (Kimmel...
Words: 1401 - Pages: 6
...which one of the financial statements was the most important. The purpose of this paper is to identify the four basic financial statements and the purpose they serve. Throughout this paper I will breakdown how the different financial statements could be useful for managers and their employees. I will also discuss how the different financial statements could be beneficial for creditors and investors. To conclude the paper I will summarize it all up with a conclusion. The four basic financial statements are balance sheets, income statements, cash flow statements, and statements of shareholders’ equity. Balance sheets break down what all a company owes and owns at a particular period of time .Balance sheets also contain valuable information such as a company’s liabilities, shareholders equity, and assets. Balance sheets contain information at the end of a reporting period. Balance sheets do not contain the all the ins and outs to accounts during a reporting period. A balance sheet is also referred to as a statement of financial position. Income statements provide you with how much money a company made and spent over a period of time. Income statements also provide you with the cost and the expenses associated with earning money. The bottom line on an income statement provides you with the amount of money a company loss or made. The top line on an income statement provides you with the amount of money generated from sales of services and products. Income statements also provide you...
Words: 653 - Pages: 3
...Financial Management of Health Care Organizations Latasha Rowell August 4, 2015 HCS/405 Conway Brew Financial Management In any business, financial managers should ensure that financial reporting practices and ethical standards are being met as well as maintained. These practices are vital in the financial success for any company, especially in health care finance. Within this paper, a summary of the four elements of financial management, generally accepted accounting principles, and general financial ethical standards will be discussed. Summary of the Four Elements of Financial Management There are four main financial statements of a profit earning organization. They include the balance sheet, the statement of revenue and expense, the statement of fund balance or net worth, and the statement of cash flows. The balance sheet provides a snapshot of what an organization's owns and owes. This is displayed as assets and liabilities. The balance sheet provides a snapshot of a company’s net worth. The income statement provides an overview of the financial flow of an organization. This report is commonly extracted for a specific period of time rather than a single point in time. This statement is most often utilized in an audited financial report on a quarterly and annual basis. The statement of net worth calculates the non-operating expenses and allows the income statement to tie back to the balance sheet when the three statements are prepared for the same point in time...
Words: 877 - Pages: 4
...Financial Statements Paper Thomas Hastings ACC/290 April,11,2012 Rolland Roup Financial Statements Paper In the accounting world there are four different financial statements. These financial statements provide a very wide amount of information which is very valuable information to internal and external users in many different types of companies. These four financial statements are the balance sheet, income statement, retained earnings and statement of cash flow. These four financial statements form the backbone of financial accounting. (Kimmel, Weygandt, & Kieso, 2009) Each of the four financial statements has its own use’s within accounting and each provides different and very crucial information to its proper user’s. The first financial statement is the balance sheet, the balance sheet shows a picture at a point in time of what your business owns (its assets) and what it owes (its liabilities). The second financial statement is income statements show how successfully your business performed during a period of time, it reports revenues and expenses. The third financial statement is retained Earnings are used to indicate how much of the previous income was distributed to you and the owners of your business in the form of dividends, and how much was retained in the business to allow future growth. The fourth financial statements is statement of cash flow is to show where your business obtained cash during a period of time and how that cash was used. (Kimmel,...
Words: 715 - Pages: 3
...September 24, 2012 Introduction It has been published in the news media that the government of the United States will open up some opportunities for businesses by releasing some funds. This week’s assignment is to discuss the forms of business organizations. Also, the intent of this paper is to discuss the accounting structure for the lending process along with all the legal documentation. The intent of the paper will also discuss starting up a small business which will be a spa and massage parlor on St. Simons Island, Ga. while also evaluating the pros and cons of the four types of business organizations. The four types of business organizations that we will discuss are which are sole proprietorship, partnership, a C corporation, and an S corporation. All businesses have to choose what business form they want to operate the business in. There are four main business organizations that are used in the business environment today that has been mentioned previously. It has to be decided before the process begins what type of organization the owner wants. A sole proprietorship is a business owned by a single person (Kimmel, Weygandt, & Kieso, 2009). An advantage of sole proprietorship is it is simple to begin and allows the owner to have the decision making over the business (Kimmel, Weygandt, & Kieso, 2009). The pro for a business person who has the desire to start a new company is that they have choice to decide how they want...
Words: 1183 - Pages: 5
...Financial Statements In accounting there are four basic financial statements that are considered standard practice by the generally accepted accounting principles (GAAP). These are the income statement, the retained earnings statement, the balance sheet and the statement of cash flows. While each of these reports is very important in its own regard, they are also intermingled and depend on each other to represent a complete unbiased view of an organizations financial situation. The income statement reports revenues and expenditures for the given period of time. This report is important because it will show net income or net loss for a given period of time. However, not all monies received are considered revenue and not all monies put out are considered expenditures. For example money received from selling or issuing stocks are not considered revenue. The same holds true for dividends, they are not considered expenditures. This period of time can vary from organization to organization. Most reports are shown on a quarterly and annual basis. When the income statement is properly prepared will produce the company's net income. This amount is then transferred to the retained earnings statement. The retained earnings statement shows the income that is retained by the organization. This report not only shows changes but also the reason for said changes. This allows all interested parties to see and understand if there is a significant variation from the previous report. This...
Words: 920 - Pages: 4
...Financial Statements “Accounting Equation” was the very first PhxKlips that was presented. The equation Assets = Liabilities + Owner’s Equity also known as the ALOE equation was one of the main things I’ve learned. I remember doing this in an accounting class that I took in high school. It explained things a lot better than I already knew. This is the known as the foundation for all of the principles and accounting tasks in accounting. “Debits and Credits” was the second PhxKlips that was presented. Income is recorded on the right side of the T account which is a credit, and expenses are recorded on the left side of the T account which is a debit. This taught me when to use credits and debits when posting expenses and income. “Financial Statements” was the third PhxKlips that was presented. This presented four financial statements that are used to report financial information within a company. The four statements are the Statement of Cash Flow, the Balance Sheet, The Retained Earnings Statement and the Income Statement. These four financial statements make up the condition that the company is in financially. “Income Statements” was the last PhxKlips that was presented. Two approaches to gross profit expression were presented with this. Single step and multi-step approaches. The single step approach deals with one piece of information. That’s expense, revenue and net income. The one and only step is expenses are subtracted from revenues. This makes setting up an income statement...
Words: 282 - Pages: 2
...Financial Statements: Foundational Accounting Principles and Terminology Shane R. Wagner TUI University Module 1 Case Study 29 August 2010 Abstract This paper will discuss the common fundamental accounting principles and analyze the financial statements of three major businesses. A basic understanding of the General Accepted Accounting Principles and the standards established within these practices, allow for investors to obtain an accurate snapshot of the financial health of a business. The different methods of documenting both current and future transactions, can have an impact on the information portrayed by the financial statements of an organization. In addition, the basic format of the financial statements can disclose additional considerations of the business, as will be discussed in the analysis of three major businesses within this paper. Information for the analysis portion was retrieved from the financial statements included in the assignment. Keywords: Accrual Basis Accounting; Cost Basis Accounting; Current Assets and Liabilities; Double Entry Accounting; Financial Accounting Standards Board (FASB); General Accepted Accounting Principles (GAAP); Historic Cost; Non-current Items; Security Exchange Commission (SEC); Financial Statements: Foundational Accounting Principles and Terminology Introduction The basic of understanding of an organizations financial statement requires one to be familiar with fundamental accounting principles...
Words: 1771 - Pages: 8
...accuracy for financial management. In this paper we can discuss the basic elements of financial management reporting practices and ethical standards in a health care world that is reforming as we speak. With great amount of changes will comes accountability to everyone inner and outer of the organization. This subject will explain the elements of financial management, general financial ethical standards, and will oversee some corporate scandals involving ethics, fraud, and abuse. The way an organization correlates, organizes, and prepares the reports for its financial information is part of its financial practices that it adheres too in order to accomplish the goals for its ethical standards. Today’s health care plans play a very important role in financial management. A company would be unable to operate without proper financial planning. The importance of storing and tracking all accounting records while being up to date will be the main factor as to whether the guidelines are being followed. This also allows the outer management to determine how the company is doing as a whole and also be aware as to where most of the funding is going. With new procedures coming out with new equipment the overhead cost need to be turning a profit in order for it to be an economical situation. Four Elements To understand the four elements of financial management you must first understand this management covers an overview of finances for the organization. The goals for financial management...
Words: 716 - Pages: 3
...Question 1(i) Main purposes of Conceptual Framework Document The Conceptual Framework explains the main objectives as well as the concepts that underlie financial accounting and reporting. The Conceptual Framework creates the concepts that are useful in developing International Accounting Standards and other documents that provide guidance on information included in general purpose financial statements. It standardizes the development and revision of accounting standards. However, the framework does not override the accounting standards in this case. The main purpose of financial accounting and reporting is basically the foundation of the Conceptual Framework. The Conceptual Framework document generally explains the concepts that underlie the preparation and presentation of financial statements for external users such as the investors, creditors, government and so on in order to help them to make wise decision. Secondly, it also support the development of future accounting standards and also minimizes the basis for alternative accounting treatments by creating the rules that should be followed in preparing financial information. Thirdly, it can also help preparers and auditors of financial information in dealing with issues that are not the subject matter of an accounting standard for any transactions, events, conditions or circumstances. Lastly, it aids national standard setting bodies in developing national accounting standards. It also prevents the accountancy profession...
Words: 1680 - Pages: 7
...Financial Statement Differentiation Financial Statement Differentiation In our text Accounting: Tools for business decision making authors Kimmel, Weygandt, and Kieso (2009) stated that “Success in business requires making countless decisions, and decisions require financial information.” This reflects the perfect definition for financial statements and what their sole purpose is. Financial Statements summarize the financial condition or health of a company. For this paper, one will look at each of the four financial statements and discuss the information they provide. Then the internal and external users of financial statements will be addressed along with the main interests of each of these users. Income Statement An income statement is used to report whether a company is making a profit or loss. This is the determining factor in a company being successful or not. The income statement reports the company’s revenues and expenses over a specific period of time. The format of the income statement begins with the time period listed, and then the revenues and expenses are listed. The net income for the company is then determined by subtracting the expenses from the revenues. (Kimmel, Weygandt, & Kieso, 2009) Balance Sheet The balance sheet illustrates the company’s assets and liabilities. That is, what the company owns and owes. It also shows the stockholders’ equity. The balance sheet, as its name suggests must have the same balance for assets and liabilities...
Words: 882 - Pages: 4
