BUS 600 Week 3 Assignment 1.2

Assignment 1.2
Chapter 3 – Accounting Summary and blogging


At the last part of the overview, Steven (the author) mentioned that:
“If the material in this chapter was totally new for you, most probably you have not completely absorbed it”

Well, I have no comment based on my background. But I do understand the importance of accounting to help my management administration skills.

Key things on Accounting:

1. Assets = Liability + Owner’ Equity
1. Assets are economic resources
2. Liability is an entity arising from past transactions or events.
3. Equity is the residual claim investors in assets after liabilities paid off.
2. Three basic financial statements:
1. Balance sheet is a summary of the financial balances of a company
1. Summarize the Assets/ Liability and equity of a company financial situation
2. Income statement is the profit and loss statement (P&L), operating statement and earnings statement.
1. It will shows how the company revenue being transformed as the net income.
3. Cash flow statement is the cash in and cash out activity of the business.
3. Accounting records and statement must always balance.
4. Operating results can be analyzed and managed using variances.
1. This helps me to understand the operating cost of an organization.
5. Last but not least – leave it to the software to take care of your accountings.- Peachtree/ MYOB/ CYMA etc.