Summary Ch 1 Accounting in Action - Financial Accounting with International Financial Reporting Standards - FAC2

Accounting in Action
Chapter Number Chapter 1




Accounting in Action 1

, Table of Contents

Outline
1.2 The Building Blocks of Accounting
Accounting Standards
Measurement Principles
Historical Cost Principle
Fair Value Principle
Assumptions
Monetary Unit Assumption
Economic Entity Assumption
1.3 The Accounting Equation
Assets
Liabilities
Equity
Share Capital—Ordinary

Retained Earnings
1.4 Analyzing Business Transactions
Transaction (1). Investment by Shareholders
Transaction (2). Purchase of Equipment for Cash
Transaction (3). Purchase of Supplies on Credit
Transaction (4). Services Performed for Cash
Transaction (5). Purchase of Advertising on Credit
Transaction (6). Services Performed for Cash and Credit
Transaction (7). Payment of Expenses
Transaction (8). Payment of Accounts Payable
Transaction (9). Receipt of Cash on Account
Transaction (10). Dividends
1.5 Financial Statements




1.2 The Building Blocks of Accounting
Accounting Standards
two primary accounting standard-setting bodies:

International Accounting Standards Board (IASB)



Accounting in Action 2