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FINANCIAL ACCOUNTING
Business Administration – 1st year
Iași, 2019
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
FINANCIAL ACCOUNTING
Assessment
-evaluation during semester (EDS) 50%
-test 80% (week 5)
-test quizzes 20%
-exam 50%
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
References
Horngren, C.T., Sundem, G.L., Elliot, J.A., Philbrick,
D, Introduction to Financial Accounting, 11th edition,
Pearson, 2014
Harrison W.T., Horngren C.T., Financial Accounting, 7th
edition, Pearson, Prentice Hall, 2008
Pollard M., Mills S. K., Harrison W. T., Principles of
Accounting, Pearson Prentice Hall, New Jersey, 2007
Weygandt J.J., Kieso D.E., Kimmel P.D., Financial
accounting, Wiley&Sons, 2002
The PPT presentations and the seminar drafts will
be available on Blackboard, prior to the meetings.
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Course 1
5
Copyright ©2010 Pearson Education Inc. Publishing as Prentice Hall.
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Accounting as an Information
System
Business Companies
People make
transactions report their
decisions
occur results
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Types of Accounting
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
GAAP
U.S. GAAP: published by FASB
Applies to financial reporting in the U.S.
Used by companies with stock traded on U.S.
stock exchanges
IFRS: published by IASB
Applies to companies reporting in more than
100 countries around the world
Used by foreign companies listed on U.S.
exchanges
In future U.S. regulators may allow all U.S.
companies to use IFRS as well
Copyright © 2014 Pearson Education, Inc. Publishing as Prentice Hall. 1-18
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
• Outsider claims
Liabilities • Debts payable to others (creditors)
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
ASSETS LIABILITIES
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Amounts
Amounts
earned and
shareholders
kept by
have invested
business
Common
stock
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Net Income
If
Revenues expenses
exceed
revenues
Expenses
A net loss
results
Net Income
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Retained Earnings
Revenues that increase RE
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Exercise
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Exercise
Requirements
1. Use these data to write Hombran
Doughnuts’ accounting equation.
2. How much in resources does Hombran
have to work with?
3. How much does Hombran owe creditors?
4. How much of the company’s assets do the
Hombran stockholders actually own?
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Statement
Statement
Income of Balance
of Cash
Statement Owner’s Sheet
Flows
Equity
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
ABC Corporation
Statement of Retained Earnings
For the year ending December 31, 2016
Retained earnings, December 31, 2015 $$,$$$
Plus: Net income $$,$$$
Less: Dividends $$,$$$
Retained earnings, December 31, 2016 $$,$$$
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Financing
• Issuing stock and borrowing
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Balance Sheet
December 31, 2010
Assets $$$,$$$
Liabilities $$$,$$$
Stockholders’ equity:
Common stock $$$,$$$
Retained earnings $$$,$$$
Total liabilities and equity $$$,$$$
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Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019
Copyright ©2010 Pearson Education Inc. Publishing as Prentice Hall.
Balance Sheet
December 31, 2010
Assets $$$,$$$
Liabilities
Cash from
$$$,$$$
the Asset
Stockholders’ equity:
section of
Common stock $$$,$$$
the
Retained earnings $$$,$$$
Balance
Total liabilities and equity $$$,$$$ Sheet
Statement of Cash Flows equals
For the year ended December 31, 2010
ending
Cash flows from operating activities $$$,$$$
Cash on
Cash flows from investing activities $$,$$$ the
Cash flows from financing activities $$,$$$ Statement
Net cash flows $$,$$$ of Cash
Cash balance, December 31, 2009 $$,$$$ Flows
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Cash balance, December 31, 2010 $$,$$$
Assoc Prof PhD Carmen Huian, UAIC, FEAA, BA - I , 2019