Module 1
Complete the following Tasks:
1. Peruse Chapter 1 (pages 2-22) in the textbook to get an overall understanding of
the contents.
2. Read the four module pages below. Have the textbook available and refer to it in
detail whenever the module page indicates to do so.
3. (Optional) Do the Chapter 1 SmartBook module in McGraw Hill's Connect. The
module takes about an hour to do, on average, but the more questions you get
right, the faster it will go.
4. Work the practice exercises and problems for this chapter in Connect. The
SmartBook modules and practice sets are not graded for accuracy, just for
completion.
Learning Objectives:

Identify users of accounting information
External Users (Financial Accounting) – do not directly run the organization
Internal Users (Managerial Accounting) – directly manage the organization

Explain the role of Generally Accepted Accounting Principles in financial
accounting
GAAP are concepts and rules which governs accounting practices to ensure
information recorded and reported is relevant and a faithful representation.

Define the Fundamental Accounting Equation and each of its components

Define the terms "net income" and "net loss"
Net Income = Revenues – Expenses when revenues exceed expenses
Net Loss = Revenues – Expenses when expenses exceed revenues

Analyze business transactions using the Fundamental Accounting
Equation

Identify and prepare the four basic financial statements and explain how
they interrelate
Income Statement
Statement of owner’s equity
Balance sheet
Statement of cash flows
(page 16)
(page 17)
Module 2 pg 44 - 65
Learning Objectives:

Describe an account and its use in recording transactions.
An account is a record of increases or decreases in a specific asset,
liability, equity, revenue, or expense.

Define the terms "debit" and "credit" and explain double-entry accounting –
In T-accounting the left side of an account is a debit and the right side is a credit.


Debt Ratio =


Describe a ledger and a chart of accounts. Ledger is a record of all accounts and their balances

Analyze the effect of transactions on accounts and on the financial statements.

Record transactions in a journal and post entries to a ledger.

Prepare a trial balance.

Prepare financial statements from a trial balance.
1
Income Statement = Revenues Earned – Expenses over a period of time

2
Net Income is the bottom line for the Income Statement
Statement of Owners Equity = reports how equity changes over the
reporting period/