1 / 17

Austin Community College

Austin Community College. Accounting Department Presents Math for Accounting: Basic Concepts. Examples. Basic math concepts Used in accounting applications. Actual Accounting Examples. Some of the concepts may be new you. . Don’t worry – you will cover these in detail.

arleen
Télécharger la présentation

Austin Community College

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Austin Community College Accounting Department Presents Math for Accounting: Basic Concepts

  2. Examples • Basic math concepts • Used in accounting applications

  3. Actual Accounting Examples Some of the concepts may be new you. Don’t worry – you will cover these in detail. For now – let’s focus on the math concepts.

  4. Tools Use your calculator Print the narrative

  5. Vertical Analysis Course Syllabus

  6. Percentages 56.25% 450/800 X 100 12.50% 100/800 X 100 6.25% 50/800 X 100 25.00% 200/800 X 100 100% 56.25 +12.5 +6.25 +25 = 100

  7. Horizontal Analysis • Inflation Rate: 5% • Current Salary: $40,000 • New Salary: $42,500 Did the salary increase keep up with the inflation rate?

  8. Horizontal Analysis Ending Amount - Beginning Amount Beginning Amount X 100 $42,500 - $40,000 $40,000 $2,500 $40,000 6.25% = X 100 =

  9. Horizontal Analysis Percent of Increase: 6.25% Inflation Rate: 5.00%

  10. Take Home Pay Monthly Salary Information:

  11. Take Home Pay (400) 4,000 X .10 (248) 4,000 X .062 (58) 4,000 X .0145 $3,294 4,000 – 400 – 248 – 58 = 3,294

  12. Allocation Two friends contribute to an investment: Friend A – $100,000 Friend B – $200,000 • Agreement: • after 2 years • allocate the value $500,000 • based on the original contributions

  13. Step 1 Determine the percentage that each originally invested: 33.33 100,000/300,000 X 100 ≈ 33.33% 66.67 200,000/300,000 X 100 ≈ 66.67% 100 % Rounding Issue

  14. Step 2 Allocate the $500,000 based on the %: $ 166,650 500,000 X .3333 $ 333,350 500,000 X .6667 $ 500,000

  15. Average Balance Sheet Amounts The actual amounts are $1,360,000,000 and $1,840,000,000 Add 3 zeros

  16. Average Beginning Amount + Ending Amount 2 $1,360,000 + $1,840,000 2 = $1,600,000 (in thousands)

  17. Summary • Proper Tools • Calculator, Excel, Pencil and Paper • Reasonable answer • Practice • Help • Instructor/Tutor • Classmates, friends, family

More Related