Preparation of Financial Statements Week 2

August 2021 Saniya Barbolova

ACCOUNTING

&

FINANCE MODULE

CORE COURSE

IN BUSINESS

Preparation of Financial Statements

Week 2

Financial Accounting

Week 2

Preparation of Financial Statements

FinancialAccounting

HomeworkforWeek2

Assigned homework problems

From Topic 1

 Question 1-2 – Routine bookkeeping

 Question 1-12 – Organizations

From Topic 2

 Exercise 2-13 – Balance sheet and income statement

 Problem 2-22 – Income statement and statement of cash flows

FinancialAccounting

HomeworkTips!!!

SamplefromWeek2Homework

Problem2‐22– Accrualnetincomevs.operatingcashflow

•Revenuesandexpensesarereportedinanincomestatementwhentherevenueis

earnedortheexpenseisincurred.Thisisnotnecessarilythesametimethatthecashis

receivedorpaid.Forexample,imaginethatIdoaconsultingprojectinDecemberofthis

yearbutamnotpaidincashuntilthefollowingJanuary.Therevenuefromthe

consultingprojectisreportedintheincomestatementforDecemberofthisyear.

However,theoperatingcashinflowisnotreporteduntilIreceivethecashinthe

followingJanuary.

TheseHomeworkTipscomefrompastexperiencewithcommonstudent

misunderstandings.

FinancialAccounting

HomeworkforWeek2

MydiscussiontodaymayNOTcovereverythinginthe

homework.Youstillneedtoworkthroughalloftheassigned

homeworkproblemstobereadyfortheMoodlequiz.

Assigned homework problems

From Topic 1

 Question 1-2 – Routine bookkeeping

 Question 1-12 – Organizations

From Topic 2

 Exercise 2-13 – Balance sheet and income statement

 Problem 2-22 – Income statement and statement of cash flows

ClaytokensinMesopotamia

7,000yearsago.

Countingwheatandsheep

•Howmany?

•Morethanlastyear?

Isbookkeeping theearliest

formofwriting?

Sourceformap:WikimediaCommons

HowOldisAccounting?

TheSocialValueofAccounting

•Scarceresourceallocation