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Slide ACC101 Chapter 1 Accounting in Action
Slide ACC101 Chapter 1 Accounting in Action
Slide ACC101 Chapter 1 Accounting in Action
1-1
Chapter 1
Accounting in Action
Slide
1-3
What is Accounting?
(2) organization to
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1-4 SO 1 Explain what accounting is.
What is Accounting?
Illustration 1-1
The activities of the
Three Activities accounting process
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1-5 SO 1 Explain what accounting is.
What is Accounting?
Creditors
Marketing Regulatory
Agencies
Investors
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1-6 SO 2 Identify the users and uses of accounting.
What is Accounting?
Common Questions Asked User
1. Can we afford to give our
employees a pay raise? Human Resources
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1-7 SO 2 Identify the users and uses of accounting.
The Basic Accounting Equation
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1-8 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Assets
Resources a business owns.
Provide future services or benefits.
Cash, Inventory, Equipment, etc.
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1-9 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Liabilities
Claims against assets (debts and obligations).
Creditors - party to whom money is owed.
Accounts payable, Notes payable, etc.
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1-10 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Equity
Ownership claim on total assets.
Referred to as residual equity.
Share capital and retained earnings.
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1-11 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Illustration 1-7
Revenues result from business activities entered into for the purpose
of earning income.
Generally results from selling merchandise, performing services,
renting property, and lending money.
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1-12 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Illustration 1-7
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1-13 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Illustration 1-7
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1-14 SO 6 State the accounting equation, and define its components.
The Basic Accounting Equation
Solution on
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1-15
notes page SO 6 State the accounting equation, and define its components.
Using The Accounting Equation
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1-16 SO 7 Analyze the effects of business transactions on the accounting equation.
Using The Accounting Equation
Purchase product
Event Pay rent.
computer. design with
customer.
Record/
Don’t Record
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1-17 SO 7 Analyze the effects of business transactions on the accounting equation.
Using The Accounting Equation
Transaction Analysis
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1-18 SO 7 Analyze the effects of business transactions on the accounting equation.