Accounting Crash Course Lecture Notes Study Material 2025/ 2026

Accounting Crash Course – Lecture Notes _ Study Material.pdf Accounting Crash Course – Lecture Notes _ Study Material.pdf Accounting Crash Course – Lecture Notes _ Study Material.pdf




1. Accounting Crash
Course – Lecture
Notes / Study
Material




Accounting Guidehttps://www.stuvia.com/dashboard!@_)#*)(@$)($@*($@)($@*_
Crash Course – Lecture Notes _ Study Material.pdf Accounting Crash Course – Lecture Notes _ Study Material.pdf Accounting Crash Course – Lecture Notes _ Study Material

,Accounting Crash Course.pdf Accounting Crash Course.pdf Accounting Crash Course.pdf


Terms in this set (193)



Accounting is important for firm's officers, investors, lenders, and the general public


Generally Accepted Accounting Principles (GAAP) a set of accounting standards that is used in the preparation of financial
statements


Securities and Exchange Commission (SEC) -division of corporate finance: oversees financial reporting by
corporations


Financial Accounting Standards Board (FASB) Types of pronouncements:
-Statements of Financial Accounting Standards
-Interpretations
-Financial Accounting Concepts
-Emerging Issues Task Force Statements


International Financial Reporting Standards (IFRS) unified set of international accounting standards




Accounting Crash Course.pdf Accounting Crash Course.pdf Accounting Crash Course

,Accounting Crash Course.pdf Accounting Crash Course.pdf Accounting Crash Course.pdf




Assumption 1: Accounting Entity -a company is considered a separate "living" enterprise apart from its
owners
-it is engaged in clearly-defined activities
-regularly reports its financial health to the general publics
-pays taxes and can file lawsuits


Assumption 2: Going Concern -a corporation is assumed to remain in existence indefinitely
-assets and liabilities are recognized values that assume the company will
not have to sell them at liquidation


Assumption 3: Measurement -financial statements must be reported in the national monetary unit
-can only show measurable activities of a corporation


Assumption 4: Periodicity -companies are required to file annual and interim reports
-a fiscal year is frequently but not always aligned with the calendar year




Accounting Crash Course.pdf Accounting Crash Course.pdf Accounting Crash Course

, Accounting Crash Course.pdf Accounting Crash Course.pdf Accounting Crash Course.pdf




Principle 1: Historical Cost -financial statements report companies' resources at an initial historical
cost
-represents the easiest measurement method without a need a for
appraisal and revaluation
-minimized management discretion and subjectivity
-IFRS is more willing to allow this subjectivity to avoid misrepresenting the
true value of assets


Principle 2: Revenue Recognition accrual basis of accounting dictates that revenues must be recorded when
earned and measurable
-cannot be recorded until the order is shipped to a customer and
collection from that customer (who uses a credit card) is reasonably
assured


Principle 3: Matching Principle costs associated with making a product must be recorded during the
same period as revenue generated from that product




Accounting Crash Course.pdf Accounting Crash Course.pdf Accounting Crash Course