ĐĎॹá>ţ˙ ACţ˙˙˙@˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙ěĽÁ` đżbjbjć‡ć‡ ."„í„í ˙˙˙˙˙˙¤¤¤¤¤¤¤¤¸ŔŔŔŔ Ě,¸ë'śj'l'l'l'l'l'l'$Ą(h +Ɛ'¤ĹĹŐ'¤¤Ľ'ƒƒƒĹ¤¤j'ƒĹj'ƒƒŽâ%h¤¤'ř zśÇŔŰJ&j'ť'0ë'Z&ÄĎ+ń|Ď+ 'Ď+¤'LZ^@ƒž4Ňó''më'ĹĹĹŸ¸¸d¤¸¸¸¸¸¸¤¤¤¤¤¤˙˙˙˙ Class Notes Chapter 1: Accounting for Decision-Making Chapter 2: Basic Financial Statements What is accounting? Accounting is an information system that identifies, records, and communicates the economic events (transactions) of an organization to interested users. Financial accounting is the process that culminates in the preparation of financial reports on the enterprise as a whole for use by parties both internal and external to the organization. . Internal users include: External users include: Financial Statements are the principal means through which financial information is communicated to those outside an enterprise. The financial statements include: The Income Statement The Statement of Retained Earnings The Balance Sheet The Statement of Cash Flows The Income Statement: Revenues – Expenses = Net Income Revenues: Expenses: The Statement of Retained Earnings: Beginning Balance of Retained Earnings + Net Income - Dividends Declared = Ending Balance of Retained Earnings The Balance Sheet: Assets = Liabilities + Shareholders’ Equity Assets: Liabilities: Shareholders’ Equity: Statement of Cash Flows: Sources and Uses of Cash from Operating Activities, Investing Activities, and Financing Activities Operating Activities: Investing Activities: Financing Activities: The objectives of Financial Accounting are to provide information: That is useful to present and potential investors and creditors and other users in making rational investment, credit, and similar decisions. To help present and potential investors and creditors and other users in assessing the amounts, timing, and uncertainty of prospective cash receipts from dividends or interest and the proceeds from the sale, redemption, or maturity of securities or loans; and About the economic resources of an enterprise, the claims to those resources, and the effects of transactions, events, and circumstances that change its resources and claims to those resources. The accounting profession has developed a common set of standards and procedures known as Generally Accepted Accounting Principles (GAAP). These principles serve as a general guide to the accounting practitioner in accumulating and reporting the financial information of a business enterprise. Important Organizations Financial Accounting Standards Board (FASB) Securities and Exchange Commission (SEC) International Accounting Standards Board (IASB) Public Company Accounting Oversight Board (PCAOB) American Institute of Certified Public Accountants (AICPA) Institute of Management Accountants (IMA) Institute of Internal Auditors (IIA) American Accounting Association (AAA) Chapter 1: Recommended Exercises: 7, 8 Chapter 2: Recommended Problems: 1A, 4A, 8A 9uvw% â  Á d m n € Ú Ű   W ^ _ ‹  P Q S • – $%ëśüřôřôđôěčäčäčäčäčäčäčäŕäŕčŕčŕÜŘÔŘčěôüh°1"h}Ňhhfshœ$ch'TÉh7Şhôt˘hŢhĂ[h°łhTŮ%9vwć ç ˙        Â Ă Ř ű ) * + , d n o ýýýýýýýýýýýýýýýýőőőőđđđčßđ„ ^„ gd'TÉ & Fgd7Şgd7Ş & Fgd7Şýo p q } ~  € Í Ú đ   W _ ` a b o p q r ˆ ‰ Š ‹ úúúúúúňéééŕň×××××××××××ׄ ^„ gd'TÉ„°^„°gd7Ş„ŕ^„ŕgd'TÉ & Fgd7Şgd7Ş‹    ! 7 8 9 : P Q R S – — %)ëěí/0÷îîîîîîîîîéééééáááÜÜÜÜÜÜgdhfs & Fgdœ$cgdœ$c„ ^„ gd'TÉ & Fgdœ$c0\]e˜ČÉĚţ˙;<=ghiŽśˇ¸šâ÷ňň÷ňň÷ňň÷ňň÷ňň÷ňň÷ňňęĺĺĺňgd°1" & Fgd°1"gd}Ň & Fgd}Ňâăúúřóóóřřřřřřřřřgd7Şgd}Ň,1h°Đ/ °ŕ=!°"°# $ %°°Đ°Đ Đ†œ@@ń˙@ NormalCJ_HaJmH sH tH DA@ň˙ĄD Default Paragraph FontRi@ó˙łR  Table Normalö4Ö l4Öaö (k@ô˙Á(No List "˙˙˙˙9vwćç˙ÂĂŘű )*+,dnopq}~€ÍÚđW_`abopqrˆ‰Š‹ !789:PQRS–—%)ëěí  / 0 \ ] e   ˜ Č É Ě ţ ˙ ; < = g h i Ž   ś ˇ ¸ š â ă              ! ˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜ 0€€˜ 0€€˜ 0€€˜ 0€€˜0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜ 0€€˜ 0€€˜ 0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜ 0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€˜0€€9wćç˙ÂĂŘű )*+,d€ÍÚđ        ! ˜0€€€š0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜0€€€˜ 0€€€˜ 0€€€˜ 0€€€˜ 0€€€˜0€€€˜0€€€˜0€€€š 0€€€š0€€€š 0€€€˜0€€€š0€€€š0€€€{‰00€y‰00€y‰00€y‰00€y‰00€y‰00€y‰00€y‰00€y‰00  o ‹ 0â  ˙˙†"ŕÔ Ë‡"ŕě Ęˆ"ŕtŤ!‰"ତʩ"ŕ|Š×‹"ŕdŞp  = = J !  2 2 F T T ! =*€urn:schemas-microsoft-com:office:smarttags €PlaceName€=*€urn:schemas-microsoft-com:office:smarttags €PlaceType€9*€urn:schemas-microsoft-com:office:smarttags€place€ €ź§DN! :P! 9vdÚŰńńWŠOPRg   ! DN! ţ"|žŰ„j˙˙˙˙˙˙˙˙˙Ś ~!ŚÉzĆ˙˙˙˙˙˙˙˙˙‡mTA6‘B˙˙˙˙˙˙˙˙˙9w^LŢŇJę˙˙˙˙˙˙˙˙˙}p`’ń ƒ˙˙˙˙˙˙˙˙˙„Đ„˜ţĆĐ^„Đ`„˜ţo(.€ „ „˜ţĆ ^„ `„˜ţ‡hˆH.‚ „p„L˙Ćp^„p`„L˙‡hˆH.€ „@ „˜ţĆ@ ^„@ `„˜ţ‡hˆH.€ „„˜ţĆ^„`„˜ţ‡hˆH.‚ „ŕ„L˙Ćŕ^„ŕ`„L˙‡hˆH.€ „°„˜ţĆ°^„°`„˜ţ‡hˆH.€ „€„˜ţĆ€^„€`„˜ţ‡hˆH.‚ „P„L˙ĆP^„P`„L˙‡hˆH.„Đ„˜ţĆĐ^„Đ`„˜ţo(.€ „ „˜ţĆ ^„ `„˜ţ‡hˆH.‚ „p„L˙Ćp^„p`„L˙‡hˆH.€ „@ „˜ţĆ@ ^„@ `„˜ţ‡hˆH.€ „„˜ţĆ^„`„˜ţ‡hˆH.‚ „ŕ„L˙Ćŕ^„ŕ`„L˙‡hˆH.€ „°„˜ţĆ°^„°`„˜ţ‡hˆH.€ „€„˜ţĆ€^„€`„˜ţ‡hˆH.‚ „P„L˙ĆP^„P`„L˙‡hˆH.„Đ„˜ţĆĐ^„Đ`„˜ţo(.€ „ „˜ţĆ ^„ `„˜ţ‡hˆH.‚ „p„L˙Ćp^„p`„L˙‡hˆH.€ „@ „˜ţĆ@ ^„@ `„˜ţ‡hˆH.€ „„˜ţĆ^„`„˜ţ‡hˆH.‚ „ŕ„L˙Ćŕ^„ŕ`„L˙‡hˆH.€ „°„˜ţĆ°^„°`„˜ţ‡hˆH.€ „€„˜ţĆ€^„€`„˜ţ‡hˆH.‚ „P„L˙ĆP^„P`„L˙‡hˆH.„Đ„˜ţĆĐ^„Đ`„˜ţo(.€ „ „˜ţĆ ^„ `„˜ţ‡hˆH.‚ „p„L˙Ćp^„p`„L˙‡hˆH.€ „@ „˜ţĆ@ ^„@ `„˜ţ‡hˆH.€ „„˜ţĆ^„`„˜ţ‡hˆH.‚ „ŕ„L˙Ćŕ^„ŕ`„L˙‡hˆH.€ „°„˜ţĆ°^„°`„˜ţ‡hˆH.€ „€„˜ţĆ€^„€`„˜ţ‡hˆH.‚ „P„L˙ĆP^„P`„L˙‡hˆH.„Đ„˜ţĆĐ^„Đ`„˜ţo(.€ „ „˜ţĆ ^„ `„˜ţ‡hˆH.‚ „p„L˙Ćp^„p`„L˙‡hˆH.€ „@ „˜ţĆ@ ^„@ `„˜ţ‡hˆH.€ „„˜ţĆ^„`„˜ţ‡hˆH.‚ „ŕ„L˙Ćŕ^„ŕ`„L˙‡hˆH.€ „°„˜ţĆ°^„°`„˜ţ‡hˆH.€ „€„˜ţĆ€^„€`„˜ţ‡hˆH.‚ „P„L˙ĆP^„P`„L˙‡hˆH.‡mTAţ"|}p`Ś ~!9w^L˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙                                              ĺ Ţ°1"Ÿs"Ă[œ$chfsôt˘§7Ş°ł'TÉ}ŇTŮ˙@€OOĐ źOO €@˙˙Unknown˙˙˙˙˙˙˙˙˙˙˙˙G‡z €˙Times New Roman5€Symbol3& ‡z €˙Arial"ńˆđĐh´śŚš˝śĆ Ϩw ¨w ´đĽŔ´´r4  2ƒQđHP)đ˙?ä˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙TŮ2˙˙8Class Notes Chapter 1: Accounting for Decision-Making Jane Kaplan Jane Kaplan      ţ˙ŕ…ŸňůOhŤ‘+'łŮ0Ź˜Üčü( <H h t €Œ”œ¤ä<Class Notes Chapter 1: Accounting for Decision-Making Jane Kaplan Normal.dot Jane Kaplan11Microsoft Office Word@šĺę@ läľÇ@lîśÇ¨w ţ˙ŐÍ՜.“—+,ůŽ00 hpŒ”œ¤ Ź´źÄ Ě äDrexel University Ř 9Class Notes Chapter 1: Accounting for Decision-Making Title ţ˙˙˙ţ˙˙˙ !"#$%&'()*+,-./ţ˙˙˙1234567ţ˙˙˙9:;<=>?ţ˙˙˙ý˙˙˙Bţ˙˙˙ţ˙˙˙ţ˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙Root Entry˙˙˙˙˙˙˙˙ ŔFĐŞ#śÇD€Data ˙˙˙˙˙˙˙˙˙˙˙˙1Table˙˙˙˙ď+WordDocument˙˙˙˙."SummaryInformation(˙˙˙˙˙˙˙˙˙˙˙˙0DocumentSummaryInformation8˙˙˙˙˙˙˙˙8CompObj˙˙˙˙˙˙˙˙˙˙˙˙q˙˙˙˙˙˙˙˙˙˙˙˙ţ˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙˙ţ˙ ˙˙˙˙ ŔFMicrosoft Office Word Document MSWordDocWord.Document.8ô9˛q