College Accounting: A Practical Approach by Slater (13th edition)

College Accounting: A Practical Approach by Slater (13th edition) is the 13th edition of the college textbook that is titled College Accounting: A Practical Approach, has been written by Jeffrey Slater and published by Pearson Education, Inc. Vaughn College of Aeronautics and Technology utilizes this textbook for its Vaughn College MGT120 course.

Chapter 1. Accounting Concepts and Procedures

Chapter 1 definitions

• Accounting. A system that measures the business' activities in financial terms, provides written reports and financial statements about those activities, and communicates these reports to decision makers and others.
• Sole proprietorship. A type of business organization that has one owner. This owner is personally liable for paying the business' debt.
• Partnership. A form of business organization that has at least two owners. The partners usually are generally liable for the partnership's debts.
• Corporation. A form of business organization that is owned by stockholders. Stockholders usually are not personally liable for the corporation's debts.
• Limited Liability Company. A form of business organization that is owned by one or more members. Members are only liable to the extent of their investments.
• Service company. An enterprise that provides one or more services.
• Merchandise company. An enterprise that makes its own products or buys a product from a manufacturer to sell to customers.
• Manufacturer. An enterprise that makes a product and sells it to its customers.
• Generally Accepted Accounting Principles. The procedures and guidelines that must be followed during the accounting process.
• International Financial Reporting Standards. A group of accounting standards and procedures that if adopted by the United States could replace GAAP.
• Bookkeeping. The recording function of the accounting process.
• Assets. Properties (resources) of value such as cash, sup;lies, equipment, or land owned by an organization.
• Equities. The rights of financial claims of creditors (liabilities) and owners (owner's equity) who supply the assets to an organization.
• Liabilities. Obligations that come due in the future. Liabilities are the financial rights or claims of creditors to assets.
• Creditor. Anyone who has a claim to assets.
• Owner's equity. Rights of financial claims to the assets of an organization. In the basic accounting equation, assets minus liabilities).
• Basic accounting equation. Assets = Liabilities + Owner's equity.
• Capital. The owner's investment of equity in the organization.
• Supplies. The type of assets acquired by an organization that has a much shorter life than equipment.
• Shift in assets. A shift that occurs when the composition of the assets has changed but the total of the assets remains the same.
• Account payable.
• Balance sheet.
• Cash basis.
• Accrual basis.
• Revenue.
• Account receivable.
• Expense.
• Net income.
• Net loss.
• Withdrawal.
• Expanded accounting equation.
• Income statement.
• Statement of owner's equity.
• Ending capital.

Chapter 1 problem

Michael Brown opened his law office on June 1, 2018. During the first month of operation, Michael conducted the following transactions:

1. Invested $6,000.00 in cash in law practice.