Financial Management and Engineering Economy

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Nov 10, 2013 (3 years and 9 months ago)

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Financial Management
and Engineering
Economy

Chapter 13

Accounting


Asset


Anything of monetary value a
company owns


Liability


Debt a company owes


Net Worth


Ownership interest in the
company. Capital stock and retained
earnings.


Accounting Equation


Net Worth = Assets


Liabilities

Balance Sheet


Income Statement


More Accounting


Revised accounting equation


Assets=Liabilities + net worth +
revenues
-
expenses


Income statements show profit or loss


These are done periodically, due to
changes occurring frequently

Accounting Entries


Buy supplies


Sales


Rent expense


Supplies on hand


assets


Salaries


expenses


Cost Accounting Terms


Direct Material


Direct Labor


Overhead


Cost of Goods sold


Setting prices….