17 - The Objectives of Financial Reporting & Concepts of Accrual Accounting
Accounting 101 with Jimmy StewartShow Notes
I've read a lot of boring stuff so that you don't have to! Today we will summarize some of the useful information in the FASB Concepts Statements and other literature.
This information will be useful as you move along to more advanced levels of accounting.
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Example: You own a sole proprietorship. For this period, you had revenue of $100,000, wage expense of $40,000, and computer expense of $30,000 (net income of $30,000). You also contributed $10,000 to the business this period.
Today we will go over the adjusting process. This is where we make our adjusting journal entries to get from our unadjusted trial balance to our adjusted trial balance, which contains the figures we use on the financial statements and tax returns.
Today we will discuss the accounting cycle. This is the process taken each period to record transactions, prepare the financial statements, and to reset the temporary accounts to zero for the next period.
Today we will discuss the cost layering methods that are used within the periodic and perpetual inventory systems.