Accounting Fundamentals

•All accounting is based on the fundamental accounting equation:

Assets = Liabilities + Owners’ Equity

•Assets are those things of monetary value that the firm
possesses.
•Liabilities are those things of monetary value that the firm owes
to its creditors.
•Owners’ Equity is the worth of what the firm owes to its
stockholders.

What is a balance sheet?

•It indicates everything the company owns, everything the
company owes to creditors, and the value of the ownership stake
in the company (shareholders' equity, or capital).
•The balance sheet date is the ending date of the period or year,
and is a continuation of the amounts recorded since the inception
of the company or organization.
•The balance sheet is a "snapshot" of the financial position of the
company at the balance sheet date and shows the accumulated
balance of the accounts. It reports a company's resource structure
and its financial structure.

•Another important accounting relationship:

Revenues –Expenses = Profit (or Loss)
•The relationship above defines the format of the income
statement.
Sociology

Criticized modern self without reference to mead’s social psychology which created a “category error”

Self is a reflexive process of social interaction