demo-1demo samples from barry rice’s introductory accounting i & ii virtual lectures at loyola...
TRANSCRIPT
Demo-1
DEMODEMO
Samples from Barry Rice’s
Introductory Accounting I & IIVirtual Lectures
atLoyola College in Maryland
Demo-2
ACCOUNTING AND ITS USE IN BUSINESS
DECISIONS
CHAPTER 1CHAPTER 1
[After listening to the lecture comments for this
slide, click anywhere on the slide to continue.]
Demo-3
Forms of BusinessesForms of Businesses
Single Proprietorship
Partnership Corporation
Demo-4
Single ProprietorshipsSingle Proprietorships
One owner - the simplest possible form of business
Demo-5
Single ProprietorshipsSingle Proprietorships
One owner - the simplest possible form of business
Is not considered a separate legal entity.
Demo-6
Single ProprietorshipsSingle Proprietorships
One owner - the simplest possible form of business
Is not considered a separate legal entity.
Many other textbooks start with this form and then move on to corporations.
Demo-7
Caution!Caution!
One final caution, especially for those who have had some prior accounting High School
• One course• Two courses
College• Took it and dropped the course• Took it and failed the course
One final caution, especially for those who have had some prior accounting High School
• One course• Two courses
College• Took it and dropped the course• Took it and failed the course
Demo-8
Tools of The Recording ProcessTools of The Recording Process
Debits and Credits
Journal Entries
Ledger Accounts
Demo-9
Let’s start withLet’s start withThe General Ledger AccountThe General Ledger Account
A ledger account is a tool used for classifying and summarizing information about increases, decreases, and balances of financial statements items.
Think of it as a storage container like a bucket.
Dollars, which are used to measure economic transactions, are “poured” into and out of the container.
Demo-10
Transferring (“pouring”) the balances in revenue and expense accounts into the Income Summary account.
Transferring the balance in Income Summary to Retained Earnings.
Transferring the balance in the Dividends account to Retained Earnings.
The Closing ProcessThe Closing Process
.
Demo-11
The Closing ProcessThe Closing Process
CloseRevenues
Close Expenses
Demo-12
The Closing ProcessThe Closing Process
Demo-13
Income SummaryTemporary accountExists only during the closing processDoes not appear on any financial statement
Income SummaryTemporary accountExists only during the closing processDoes not appear on any financial statement
The Closing ProcessThe Closing Process
Close Income Summary
Demo-14
Transportation CostsTransportation Costs
Free on Board (FOB) Shipping Point. FOB Destination. Freight Prepaid Freight Collect
Who pays thefreight charges?
Demo-15
FOB PointsFOB Points
ABC Wholesalers
FOB what? (Pick one)FOB what? (Pick one)
Shipping PointShipping Point
DestinationDestination
Demo-16
.
Relevant sales volume range
The Cost-Volume-Profit Chart 240
220 -
200 -
180 -
160 -
140 -
120 -
100 -
80 -
60 -
40 -
20 -
01 2 3 4 5 6 7 8 9 10 11 12
- - - - - - - - - - -
Units (000)
Do
llar
s ($
000)
Variable costsVariable costsFixed costs
Total costs
Total costs
Sales
SalesBreak-even point
Net income
Fixed costsNet lo
ss
Demo-17
ROLL ‘EM !ROLL ‘EM !
Video #1(Approx. 8 min.)
Video #2(Approx. 3 min.)
Hey! You’re
just in tim
e
for the movies.Put on your
hard hat and
click the reels.
Demo-18
Cost Behavior QuestionCost Behavior Question
Variable costs are usually characterized by:
a. Unit costs that decrease as activity increases.
b. Total costs that increase as activity decreases.
c. Total costs that increase as activity increases.
d. Total costs that remain constant.
Variable costs are usually characterized by:
a. Unit costs that decrease as activity increases.
b. Total costs that increase as activity decreases.
c. Total costs that increase as activity increases.
d. Total costs that remain constant.
Demo-19
Cost Behavior QuestionCost Behavior Question
Variable costs are usually characterized by:
a. Unit costs that decrease as activity increases.
b. Total costs that increase as activity decreases.
c. Total costs that increase as activity increases.
d. Total costs that remain constant.
Variable costs are usually characterized by:
a. Unit costs that decrease as activity increases.
b. Total costs that increase as activity decreases.
c. Total costs that increase as activity increases.
d. Total costs that remain constant.
a.
b.
c.
d.
Demo-20
Let’s wrap up Chapter 1 with some
virtual keypad questions. Click the keypad!
Chapter 1 Wrap UpChapter 1 Wrap Up