PRINCIPLES OF FINANCIAL ACCOUNTING
SUGYSMTB
PRINOFFINANCIALACCOUNTINGFEEDBACK.docxPRIN OF FINANCIAL ACCOUNTING
Walter,
I have the pleasure of reviewing your project, “Principles of Financial Accounting” which requires the understanding of various accounting terms and concepts and following that up with analyzing the various scenarios to determine if we would include or not include the information in the financials and also detailing the reasoning that the accounts would be or would not be included. Accounting definitions are very important so that the reader will be able to completely understand the concepts being presented. As we know, not everyone may understand all the concepts which would ultimately make it difficult to sufficiently understand and comprehend the best direction for the company to proceed successfully.
Both of the documents required have a very useful and specific purpose. The template document requires an efficient understanding of the principles and terms associated with the accounting process as well as the various elements included as well. The brief document explains GAAP and its benefits and limitations.
You did a good job on this project as the initial submission. This is a difficult and thorough project but it does an excellent job of making sure that you have a good understanding of accounting.
Within the rubric there are comments to assist you along your goal of project mastery.
1) Applies the most relevant accounting principle for each business transaction. NOT MASTERED!!!!!
You did a very good job on this initial submission and many of the scenarios are already correct, however many of the scenarios are missing. Each of the scenarios will need to also have a principle stated from the principles referred to in the resources. Not all will be used but there are some that are specific to expenses and some that are specific to the revenues. Those are going to be utilized the most often. There are certainly a couple of common expense focused scenarios (accrual and matching) and the same holds true for revenue focused scenarios (accrual and recognition). In addition, there are principles for non-business events (accounting entity), non-monetary events (monetary unit) and even small amount type principles. Here are the comments for this submission. I will comment on the ones that need revision if necessary. Parents $5000—Principle needs revision for this transaction. Ancient cost is not a principle though. Would we include this business transaction? Accounts are both correct though. Computer purchase—Assets do increase but there are no expenses. We actually owe for the computer. 2 future rents paid—Principle needs revision for this business transaction. Would we include this business transaction? Both accounts are correct though. Interview—Principle needs revision for this non-monetary event. No accounts are needed as well. Completed $3000 work and sent bill—Revenues do increase so we just need the other account for the receipt. Personal $1000 withdrawal—This scenario is missing. Business seminar— This scenario is missing. Supplies purchased— This scenario is missing. Work $4000 completed, paid in cash and bill— This scenario is missing. Paid health insurance— This scenario is missing. Pre paid insurance-- This scenario is missing. Mileage reimbursement— This scenario is missing. Side business— This scenario is missing. Petty cash replenishment— This scenario is missing. Received bill for future seminar— This scenario is missing. Here are some good aids to assist you as well. Accounting principles are discussed in the Unit resources Reading: How to Read and Interpret Financial Statements: A Guide to Understanding What the Numbers Really Mean, Chapter 1. Beginning on page 7. Discussion of different types of accounts is in the Accounting principles unit resources:
Resource: Financial Accounting, Section 2.4. In the Business Transactions unit. Accounting Principles: A Business Perspective Chapter 2 provides examples of when to increase and when to decrease an account.
2) Explains rationale for applying each accounting principle. NOT MASTERED!!!!!
Revisions will be needed once adjustments are made as well as for the missing scenarios.
3) Decides to include or omit each business transaction. NOT MASTERED!!!!!
You did a very good job on this initial submission and many of the scenarios are already correct, however many of the scenarios are missing. Each of the scenarios will need to also have a principle stated from the principles referred to in the resources. Not all will be used but there are some that are specific to expenses and some that are specific to the revenues. Those are going to be utilized the most often. There are certainly a couple of common expense focused scenarios (accrual and matching) and the same holds true for revenue focused scenarios (accrual and recognition). In addition, there are principles for non-business events (accounting entity), non-monetary events (monetary unit) and even small amount type principles. Here are the comments for this submission. I will comment on the ones that need revision if necessary.
Parents $5000—Principle needs revision for this transaction. Ancient cost is not a principle though. Would we include this business transaction? Accounts are both correct though. 2 future rents paid—Principle needs revision for this business transaction. Would we include this business transaction? Both accounts are correct though. Personal $1000 withdrawal—This scenario is missing. Business seminar— This scenario is missing. Supplies purchased— This scenario is missing. Work $4000 completed, paid in cash and bill— This scenario is missing. Paid health insurance— This scenario is missing. Pre paid insurance-- This scenario is missing. Mileage reimbursement— This scenario is missing. Side business— This scenario is missing. Petty cash replenishment— This scenario is missing. Received bill for future seminar— This scenario is missing. Here are some good aids to assist you as well.
Accounting principles are discussed in the Unit resources Reading: How to Read and Interpret Financial Statements: A Guide to Understanding What the Numbers Really Mean, Chapter 1. Beginning on page 7. Discussion of different types of accounts is in the Accounting principles unit resources: Resource: Financial Accounting, Section 2.4. In the Business Transactions unit. Accounting Principles: A Business Perspective Chapter 2 provides examples of when to increase and when to decrease an account.
4) Determines the appropriate account type for each business transaction. NOT MASTERED!!!!!!
You did a very good job on this initial submission and many of the scenarios are already correct, however many of the scenarios are missing. Each of the scenarios will need to also have a principle stated from the principles referred to in the resources. Not all will be used but there are some that are specific to expenses and some that are specific to the revenues. Those are going to be utilized the most often. There are certainly a couple of common expense focused scenarios (accrual and matching) and the same holds true for revenue focused scenarios (accrual and recognition). In addition, there are principles for non-business events (accounting entity), non-monetary events (monetary unit) and even small amount type principles. Here are the comments for this submission. I will comment on the ones that need revision if necessary. Parents $5000—Principle needs revision for this transaction. Ancient cost is not a principle though. Would we include this business transaction? Accounts are both correct though. Computer purchase—Assets do increase but there are no expenses. We actually owe for the computer. 2 future rents paid—Principle needs revision for this business transaction. Would we include this business transaction? Both accounts are correct though. Interview—Principle needs revision for this non-monetary event. No accounts are needed as well. Completed $3000 work and sent bill—Revenues do increase so we just need the other account for the receipt. Personal $1000 withdrawal—This scenario is missing. Business seminar— This scenario is missing. Supplies purchased— This scenario is missing. Work $4000 completed, paid in cash and bill— This scenario is missing. Paid health insurance— This scenario is missing. Pre paid insurance-- This scenario is missing. Mileage reimbursement— This scenario is missing. Side business— This scenario is missing. Petty cash replenishment— This scenario is missing. Received bill for future seminar—
This scenario is missing. Here are some good aids to assist you as well. Accounting principles are discussed in the Unit resources Reading: How to Read and Interpret Financial Statements: A Guide to Understanding What the Numbers Really Mean, Chapter 1. Beginning on page 7. Discussion of different types of accounts is in the Accounting principles unit resources: Resource: Financial Accounting, Section 2.4. In the Business Transactions unit. Accounting Principles: A Business Perspective Chapter 2 provides examples of when to increase and when to decrease an account.
5) Determines whether each account type results in an increase or decrease of the account. NOT MASTERED!!!!!
You did a very good job on this initial submission and many of the scenarios are already correct, however many of the scenarios are missing. Each of the scenarios will need to also have a principle stated from the principles referred to in the resources. Not all will be used but there are some that are specific to expenses and some that are specific to the revenues. Those are going to be utilized the most often. There are certainly a couple of common expense focused scenarios (accrual and matching) and the same holds true for revenue focused scenarios (accrual and recognition). In addition, there are principles for non-business events (accounting entity), non-monetary events (monetary unit) and even small amount type principles. Here are the comments for this submission. I will comment on the ones that need revision if necessary. Parents $5000—Principle needs revision for this transaction. Ancient cost is not a principle though. Would we include this business transaction? Accounts are both correct though. Computer purchase—Assets do increase but there are no expenses. We actually owe for the computer. 2 future rents paid—Principle needs revision for this business transaction. Would we include this business transaction? Both accounts are correct though. Interview—Principle needs revision for this non-monetary event. No accounts are needed as well. Completed $3000 work and sent bill—Revenues do increase so we just need the other account for the receipt. Personal $1000 withdrawal—This scenario is missing. Business seminar— This scenario is missing. Supplies purchased— This scenario is missing. Work $4000 completed, paid in cash and bill— This scenario is missing. Paid health insurance— This scenario is missing. Pre paid insurance-- This scenario is missing. Mileage reimbursement— This scenario is missing. Side business— This scenario is missing. Petty cash replenishment—
This scenario is missing. Received bill for future seminar— This scenario is missing. Here are some good aids to assist you as well. Accounting principles are discussed in the Unit resources Reading: How to Read and Interpret Financial Statements: A Guide to Understanding What the Numbers Really Mean, Chapter 1. Beginning on page 7. Discussion of different types of accounts is in the Accounting principles unit resources: Resource: Financial Accounting, Section 2.4. In the Business Transactions unit. Accounting Principles: A Business Perspective Chapter 2 provides examples of when to increase and when to decrease an account.
https://learn.snhu.edu/d2l/le/content/754407/viewContent/12851632/View
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