1. May 2013
Accounting Boot camp

2. YOUR INSTRUCTORS Don Clancy Allison Collins
Introduction to Accounting Boot Camp

3. Why are we here? Have not had accounting before
Do not have to take undergraduate fundamentals course
Meet prerequisite requirement of MBA
Introduction to Accounting Boot Camp

4. Purpose of the boot camp
Provide an accounting background to those with limited experience in accounting
Nothing Fancy !
Introduction to Accounting Boot Camp

5. Course objectives
Understand the role of accounting and the process of forming standards for accounting.
Use essential accounting terminology.
Understand the requirements and application of transaction analysis to selected transactions.
Understand the accounting cycle (the process by which transactions become represented in financial statements).
Understand the format and purpose of primary financial statements: balance sheet, income statement, stockholders’ equity, and cash flow statement.
Introduction to Accounting Boot Camp

6. Course objectives (continued)
Understand the primary accounts in a balance sheet.
Find the time value of money.
Recognize the differences between accrual-basis and cash basis accounting.
Introduction to Accounting Boot Camp

7. Boot camp content Concepts and Standard Formation Financial Statements
Transaction Analysis
Accounting Cycle
Primary Accounts
Time Value of Money
Cash Flow
Introduction to Accounting Boot Camp

8. Rules differ from country to country Who makes the rules?
1A Standard formation
Accounting has rules!
Rules differ from country to country
Who makes the rules?
How do the rules become official (promulgated)?
Introduction to Accounting Boot Camp

9. 1B Primary financial statements
There are four financial statements:
Balance Sheet – What do we own? What do we owe? What is left over for the owners?
Income Statement – Were we successful?
Statement of Cash Flow – Where did money come from? Where did money go?
Stockholders’ Equity Statement – How did the owners’ investment change?
Introduction to Accounting Boot Camp

10. Transactions → Adjustments → Closing → Prepare Statements
2 Accounting cycle
Accounting Cycle – repetitive process of generating financial information and statements:
Transactions → Adjustments → Closing → Prepare Statements
Introduction to Accounting Boot Camp

11. 3 Primary accounts What balance sheet accounts are used by most firms?
Receivables – money owed to us
Inventory – things we will sell
Fixed Assets – property, plant, and equipment
Payables and Debt – money we owe to others
Stockholders’ Equity – money invested by owners plus reinvested earnings
Introduction to Accounting Boot Camp

12. 4 Time value of money Financial position is affected by
Accounting and the Fourth Dimension
Financial position is affected by
how much cash is received (paid), and
when cash is received (paid)
Would you rather have $1,000 now or $1,000 ten years from now?
How does inflation and rate of return affect payments and receipt of money?
Introduction to Accounting Boot Camp

13. 5 Cash Flows Statement of Cash Flow
How do increases and decreases in cash affect the company?
Cash Flow Classifications
Introduction to Accounting Boot Camp

14. Notes – handouts plus your summaries of class
Boot camp resources
Notes – handouts plus your summaries of class
Introduction to Accounting Boot Camp

15. Attendance will be taken Final exam at the end—50 questions
assessment
Attendance will be taken
Final exam at the end—50 questions
Open—handouts and notes, so take great notes
Introduction to Accounting Boot Camp