Welcome to INTRODUCTION TO ACCOUNTING Acnt 1303 Class # 76346

Instructor Name : Atef Abuelaish Married with 3 kids, Born in Cairo/Egypt. Like traveling, Reading, and Sports activities. Master of Science in Accounting, Kaplan University. Master Tax Advisor, Enrolled Agent. Accreditation council for accountancy & Taxation [ATP # ]. Working with HR Block for 10 years. Atef Abuelaish 2

Instructor Name : Atef Abuelaish Accountant with long experiences with domestic and international companies GPA Master of Science in Accounting, Kaplan University [3.92 GPA; Highest honor] GPA Bachelor degree in accounting and diploma in accounting applied science [3.85 GPA - highest honor]. Passed REG with CPA, and working on FAR and BEC. Atef Abuelaish 3

Contact Me address: Cell # Online McGraw – Hill’s Connect McGraw – Hill’s Connect All Course materials under the course name and number. Atef Abuelaish 4

Meet NO. DatesChapterTopicHomework Assignment 108/241 Accounting: The Language Business 208/261 Accounting: The Language Business Using Connect – LS 20 Points and Quiz 80 Points 308/312 Analysis Business Transactions 409/022 Analysis Business Transactions Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 509/07NO Class Labor Day 609/093 Analysis Business Transactions Using T Accounts 709/143 Analysis Business Transactions Using T Accounts Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 809/16REV. Chapters 1, 2, and 3In class room Atef Abuelaish5

Meet NO. DatesChapterTopicHomework Assignment 809/16EX. 1 Chapters 1, 2, and 3Exam 1 Using Connect – 100 Points In Class Room 909/214 The General Journal and The General Ledger 1009/234 The General Journal and The General Ledger Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 1109/285 Adjustments and The Worksheet 1209/305 Adjustments and The Worksheet Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 1310/056 Closing Entries and the Postclosing Trial Balance 1410/076 Closing Entries and the Postclosing Trial Balance Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 1510/12REV. Chapters 4, 5, and 6In class room Atef Abuelaish6

Meet NO. DatesChapterTopicHomework Assignment 1510/12EX. 2 Chapters 4, 5, and 6Exam 2 Using Connect – 100 Points In Class Room 1610/147 Accounting for Sales, Accounts Receivable, and Cash Receipts 1710/197 Accounting for Sales, Accounts Receivable, and Cash Receipts Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 1810/218 Accounting for Purchases, Accounts Payable, and Cash Payments 1910/268 Accounting for Purchases, Accounts Payable, and Cash Payments Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 2010/289 Cash 2111/029 Cash Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 2211/04REV. Chapters 7, 8, and 9In class room Atef Abuelaish7

Meet NO. DatesChapterTopicHomework Assignment 2211/04EX. Chapters 7, 8, and 9Exam 3 Using Connect – 100 Points In Class Room 2311/0910 Payroll Computations, Records, and Payments 2411/1110 Payroll Computations, Records, and Payments Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 2511/1611 Reporting Cash Flows 2611/1811 Reporting Cash Flows Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 2711/2312 Accruals, Deferrals, and The Worksheet Atef Abuelaish8

Meet NO. DatesChapterTopicHomework Assignment 2811/2512 Accruals, Deferrals, and The Worksheet Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 2911/3013 Financial Statements and Closing 3012/0213 Financial Statements and Closing Using Connect - LS 20 Points, Ex. 60 Points and Quiz 20 Points 3112/07REV. ALL CHAPTERS FOR FINAL EXAM 32 12/09FINAL COURSE FINAL EXAM Chapters Exam Using Connect – 100 Points In Class Room Atef Abuelaish9

Evaluation Requirements Homework – At Home 780 points Homework – At Home 780 points 13 Quizzes – At Home 260 points 13 Quizzes – At Home 260 points 1 st Exam – In Class 100 points 1 st Exam – In Class 100 points 2nd Exam – In Class 100 points 2nd Exam – In Class 100 points 13 Learn Smart– At Home 260 points 13 Learn Smart– At Home 260 points Final Exam – In Class 100 Points Final Exam – In Class 100 Points Grand Total 1600 points Grand Total 1600 points Atef Abuelaish10

HCC Grading Scale 90 – 100% = A 1440 – 1600 points 90 – 100% = A 1440 – 1600 points 80 – 89% = B 1280 – 1439 points 80 – 89% = B 1280 – 1439 points 70 – 79% = C 1120 – 1279 points 70 – 79% = C 1120 – 1279 points 60 – 69% = D 960 – 1119 points 60 – 69% = D 960 – 1119 points BELOW 60% = F 0 – 959 points BELOW 60% = F 0 – 959 points Atef Abuelaish11

1-13 Accounting: The Language of Business Section 1: What Is Accounting? Chapter 1 Section Objectives 1-1 Define accounting. 1-2 Identify and discuss career opportunities in accounting. 1-3 Identify the users of financial information.

How much cash does the business have? How much money do customers owe the business? What is the cost of the merchandise sold? What is the change in sales volume? How much money is owed to suppliers? What is the profit or loss? In running a business, you need answers to questions: 1-14

QUESTION: What is accounting? ANSWER ANSWER: Define Accounting Accounting is the process by which financial information about a business is classified, recorded, summarized, interpreted, and communicated to owners, managers and other interested parties. 1-15

Financial statements are periodic reports of a firm’s financial position and operating results. ANSWER ANSWER: QUESTION QUESTION: What are financial statements? 1-16

Bookkeepers & Accounting Clerks Many jobs are available in the accounting profession. Some examples are: Financial Analysts Financial Managers Identify and discuss career opportunities in accounting 1-17

1-18 Public accounting Managerial accounting Governmental accounting Accountants generally work in one of these areas:

Auditing Public accounting firms provide services such as: Tax accounting Management advisory services 1-19

QUESTION QUESTION: Who is a certified public accountant? ANSWER ANSWER: CPA A Certified Public Accountant, or CPA, is an independent accountant who provides accounting services to the public for a fee. 1-20

QUESTION QUESTION: What is managerial accounting? Managerial accounting includes a wide range of work carried on by an accountant employed by a single business in industry. ANSWER ANSWER: 1-21

Managerial Accounting, or private accounting, involves working for a single business to: Establish accounting policies Provide financial advice to management Manage the accounting system Prepare and interpret financial statements Prepare tax forms and do tax planning Prepare internal reports for management 1-22

QUESTION QUESTION: What is governmental accounting? Governmental accounting involves keeping financial records and preparing financial reports for a federal, state, or local governmental unit. ANSWER ANSWER: 1-23

Securities and Exchange Commission (SEC) Internal Revenue Service (IRS) Federal Bureau of Investigation (FBI) Homeland Security (DHS) Governmental accounting involves keeping financial records and preparing financial reports as part of the staff of federal, state, or local governmental units, such as: 1-24

Inside The Business Outside The Business Employees Financial Reports Identify the users of financial information 1-25

Assess the firm’s ability to pay its bills Set a credit limit for the firm Suppliers Use financial information to: 1-26

1-27 BanksBanks Use financial information to: Decide whether to make a loan Determine the terms of the loan

Tax Authorities Use financial information to determine the tax base for: Income taxes Sales taxes Property taxes 1-28

Regulatory Agencies and Investors The Securities and Exchange Commission (SEC) is the federal agency that oversees the financial information of public corporations. Public corporations are those whose stock is traded on stock exchanges and over-the- counter markets. 1-29

1-30 Sarbanes-Oxley Act The Act led to a major change in the regulatory environment.  The Act was designed as a regulatory crackdown on corporate fraud and corruption.

1-31 CustomersCustomers Use financial information to: Determine the economic health of the business Determine the likelihood that the firm will remain in business to provide parts, service, and support

1-32 Negotiate wages and benefits Monitor profitability of profit-sharing plans Employees and Unions Use financial information to:

1-33 Accounting: The Language of Business Section 2: Business and Accounting Chapter 1 Section Objectives 1-4 Compare and contrast the three types of business entities. 1-5 Describe the process used to develop generally accepted accounting principles.

1-34 Three major legal forms of a business entity: Sole Proprietorship Partnership Corporation Compare and contrast the three types of business entities

QUESTION QUESTION: What is a sole proprietorship? ANSWER: A sole proprietorship is a business entity owned by one person who is legally responsible for the debts and taxes of the business. 1-35

Partnership Sole Proprietorship Corporation Ownership 1 owner Ends when owner: is unable to carry on, dies, or closes the firm Life Responsibility for business debts if firm is unable to pay Owner 1-36

QUESTION: What is a partnership? A partnership is a business entity owned by two or more people who are legally responsible for the debts and taxes of the business.ANSWER: 1-37

Partnership Sole Proprietorship Corporation Ownership 1 owner Ends when owner: is unable to carry on, dies, or closes the firm Life Responsibility for business debts if firm is unable to pay Owner 2 or more owners Ends when partner(s): withdraws, dies, or closes the firm Partners individually and jointly 1-38

1-39 Typical partnerships Professional services such as: Accounting Firms Architectural Firms Dental Practices Medical Practices Law Firms

1-40 Partners must agree upon: Amount each partner will contribute to the business. Percentage of ownership of each partner. Share of profits of each partner. Duties each partner will perform. Debts - the responsibility each partner has for the partnership’s debts.

QUESTION: What is a corporation? ANSWER: A corporation is a publicly or privately owned business entity that is separate from its owners and has a legal right to own property and do business in its own name; stockholders are not responsible for the debts or taxes of the business. 1-41

Partnership Sole Proprietorship Corporation Ownership 1 owner Ends when owner: is unable to carry on, dies, or closes the firm Life Responsibility for business debts if firm is unable to pay Owner 2 or more Ends when partner(s): dies, close the firm withdraws Partners individually and jointly Can be one or thousands Continues indefinitely; ends when: business goes bankrupt stockholders vote to liquidate Stockholders can lose only the amount invested 1-42

QUESTION: What is stock? ANSWER: Stock is issued in the form of stock certificates, and represents the ownership of the corporation. 1-43

Important Distinction separate entities For accounting purposes, all forms of business entities are considered separate entities. However, the corporation is the only form of business that is a separate legal entity. 1-44

QUESTION QUESTION: What is the separate entity assumption? ANSWER: The separate entity assumption is the concept of keeping a firm’s financial records separate from the owner’s personal financial records. 1-45

QUESTION: What are Generally Accepted Accounting Principles (GAAP)? ANSWER: Generally accepted accounting principles (GAAP) are accounting standards developed and applied by professional accountants. Describe the process used to develop generally accepted accounting principles 1-46

QUESTION: What is an auditor’s report? ANSWER: An auditor’s report accompanies an independent accountant’s audit or review of a firm’s financial statements. 1-47

Accounting Terms Accounting Information System (AIS). Financial Statements (FS). Financial Position (FP) Budget. Stock. Stockholders/ Shareholders. Stakeholders. Atef Abuelaish48

Accounting Terms  Securities and Exchange Commission (SEC).  Internal Revenue Service (IRS).  Federal Bureau of Investigation (FBI).  Homeland Security (DHS)  Financial Accounting Standards Board, International Accounting Standard Board (FASB/IASB).  General Accounting Accepted Principles, International Financial Reporting Standards (GAAP/IFRS). Atef Abuelaish49

Accounting Terms Accounting Accounting Standards codification Accounting Standards Update Accounting System Auditing Auditor’s Report Certificate Public Accountant (CPA) Corporation Atef Abuelaish50

Accounting Terms Governmental Accounting international Accounting Sole proprietorship Partnership Tax Accounting Creditor Entity Financial Statements Atef Abuelaish51

Homework assignment Using Connect – LS 20 Points, Quiz 80 Points. 2 Prepare Chapter 2 “ Analyzing Business Transactions. ” Happiness is having all homework up to date Atef Abuelaish52

Thank you, and see you, Monday at the same time