Seattle University red barn 1 Seattle University Uses
Seattle University red barn 1
Seattle University Uses accounting model Sources 2
Seattle University Assets accounting model Liabilities & Equity 3
Seattle University Assets Liabilities Shareholders’Equity accounting model 4
Seattle University Assets Liabilities Shareholders’Equity accounting model 5
Seattle University Cash PP&E Assets Other C/A Liabilities C/L LT Debt Intangibles Shareholders’Equity RE+AOCI accounting model Contrib. Capital 6
Seattle University Cash PP&E Assets Other C/A Intangibles Liabilities C/L Shareholders’Equity R/E+AOCI Expenses & Losses COGS accounting model Tax, Other LT Debt Capital Revenues & Gains Revenues Other 7
Seattle University Cash Assets Other C/A Liabilities C/L LT Debt These are accounts are permanent. PP&E Intangibles Shareholders’Equity (Balance carries over period after period. ) R/E+AOCI Expenses & Losses Capital Revenues & Gains These are accounts are temporary. COGS Tax, Other Revenues Other (Balance closed at end of period. ) accounting model 8
Seattle University Cash Assets Other C/A PP&E Intangibles Left-hand side accounts increase with DEBITS. Expenses & Losses COGS accounting model Tax, Other Liabilities C/L LT Debt Shareholders’Equity Right-hand side R/E+AOCI Capital accounts increase with CREDITS. Revenues & Gains Revenues Other 9
Seattle University Cash PP&E Assets Other C/A Intangibles Liabilities C/L LT Debt Shareholders’Equity R/E+AOCI Capital The balance sheet (B/S) is a well Expenses & Losses Revenues & Gains Revenues Other COGS Tax, Other structured presentation of the balances (beginning or ending) of all permanent accounts. accounting model 10
Seattle University Cash Assets Other C/A Liabilities C/L LT Debt The income statement (I/S) is a well PP&E Intangibles structured presentation of revenues, Shareholders’Equity R/E+AOCI Capital gains, expenses and losses. Expenses & Losses COGS accounting model Tax, Other Revenues & Gains Revenues Other 11
Seattle University Cash PP&E Assets Other C/A The statement of cash flows (So. CF) is a Intangibles structured explanation of the change in the balance of CASH. Expenses & Losses COGS accounting model Tax, Other Liabilities C/L LT Debt Shareholders’Equity R/E+AOCI Capital Revenues & Gains Revenues Other 12
Seattle University Cash Assets PP&E Other C/A Intangibles Liabilities C/L Shareholders’Equity R/E+AOCI Expenses COGS accounting model LT Debt The Changes in SE Statement explains changes & Losses Revenues in each of the SERevenues Tax, Other accounts. Capital & Gains Other 13
Seattle University The Accounting Model Cash Other C/A PP&E Intangibles COGS Tax, Other accounting model C/L LT Debt R/E+AOCI Capital Revenues Other 14
Seattle University 15
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