Sep 11 2006
Account Jump Start Notes
AICPA (Ame. Inst.)
PCAOB (Oversight board)
SARBOX (2002)
SEC criminal law suites
Accounting Model:
Journal Entries: always double entry/bi-direction
Temporary accounts: salary expense
Q: Marketing/donation (what bi-direction?)
Balance Sheet
Assets=Liability+Owner Equity (e.g. house value=mortgage+OE)
Income Statement
Revenue, expenses, dividends
Asset: Increase=debit/Decrease=credit
Liability: Reverse (increase=credit, decrease=debit)
Donation case:
Cash down $200
Donation expense up $200
dr: donation (expense): 200
cr: cash (asset): 200
Asset (-200)=Liab(0)+OE(-200) { Rev (0) + Exp (-200) = Net Income (-200)}
Depreciation: Use of assets (e.g. goes to school, use up educational right)=increase expense (reduction of OE)
SEC forms:
10-K: annual
10-Q: quarterly
8-K: significant event (subjective)
proxy statement: shareholder, invitation for annual meeting
prospectus: to issue new shares, bonds, etc. details: date, price, etc.
4: Exec. equity transfer