Wk 5: Assignment 1 Ideas to use in Business or Profession

• WK5:  Assignment 1: Reading and blogging (4-8 hours)

Read the chapter of the text book related to this week's topic. Keep a blog of 3-6 ideas you learn that you can use for your business or profession. Update your blog.

Chapter 3:  Accounting is the language of business.

1.    Accounting is the language of business.  Using this language is how the corporations communicate with others who are involved in the business.

2.    There are four main financial statements:  balance sheets, income statements, cash flow statements, statements of shareholders’ equity.

3.    The golden fundamental accounting equation or the balance sheets contain,

Assets = Liabilities + Owner’s Equity, or A = L + OE

4.    2 Ways, Operating Activities,

1.    Adjust Net income for Non-Cash Expenses is the first step if the flow of cash needs adjustment.

2.    Adjust Net income for Changes in Working Capitals is also required to be adjusted for the changes in current assets and current liabilities.

accountants compute the cash generated on daily operating activities of the business.

5.    Accounting records and statements always balance.