Media Summer Week 3

In: Business and Management

Submitted By mdvorsak
Words 389
Pages 2
Media Summary
Matt Dvorsak
ACC/300
September 7, 2015
Lucy Jane Wilson

In this weeks videos the first segment covers the importance to balancing the books. Balancing the books is an essential part to the business. Accounting methods help businesses to collect, record and analyze financial data. Informed business decisions can be made on the data through the recorded information in the well-kept records. The video goes into detail on the accounting information and tools, balance sheet, calculating profit and loss, cash controls and assessing financial performance.
Accounting information and tools is in reference to the four processes of collecting, recording, analyzing and reporting. Accounting information is about taking raw financial data and turning it into information used by the clients to assist them into making sound business decisions. Collecting the data is the first step and includes some of the following investment reports, pay slip and bank statements. The data is then recorded, analyzed and then reported the findings to the client.
The balance sheet uses an equation where assets equal liabilities plus the owner’s equity. Assets are things that thee business owns or trades with any money it owns. Current assets are circulating constantly, and fixed assets are equipment. Liabilities are claims against the business including current liabilities like financial loans planned to be paid off in a year and non-current liabilities like auto loans that stretch over a period of years.
The calculation of profit and loss is an essential measuring stick to how a business is doing. Profit and/or loss measure the difference between income and expenses. The calculation of process or loss is the difference in the income in the operation of the company and the decrease of owners’ equity attributable to expenses. An example of an increase of profit…...

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