The following will be discussed in this chapter: Accounting transactions, financial statements, the accounting equation, time line for financial statements, generally accepted concepts and principles, limitations of financial statements, company annual report. | CHAPTER 2 Financial Statements and Accounting Concepts/Principles 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Overview Accounting transactions Financial statements The accounting equation Time line for financial statements Generally accepted concepts and principles Limitations of financial statements Company annual report 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Accounting Transactions Transactions are economic exchanges between entities that are accounted for and reflected in financial statements. Trans + action = between parties 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Financial Statements Transactions Procedures for sorting, classifying, and presenting (bookkeeping). Selection of alternative methods of reflecting the effects of certain transactions (accounting). FINANCIAL STATEMENTS 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Financial Statements ACCOUNTS Transactions are summarised in accounts. Accounts are further summarised in the financial statements. 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Financial Statements 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Balance Sheet The balance sheet lists an organization's ASSETS, LIABILITIES and OWNERS’ EQUITY at a point in time. It is a snapshot of its financial position. It used to be | CHAPTER 2 Financial Statements and Accounting Concepts/Principles 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Overview Accounting transactions Financial statements The accounting equation Time line for financial statements Generally accepted concepts and principles Limitations of financial statements Company annual report 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Accounting Transactions Transactions are economic exchanges between entities that are accounted for and reflected in financial statements. Trans + action = between parties 2- Copyright 2007 McGraw-Hill Australia Pty Ltd PPTs t/a Accounting: What the Numbers Mean 2e by Marshall, McCartney & Van Rhyn Slides prepared by John Tretola Financial Statements Transactions Procedures .
