Chapter 1 Study Notes - Users & Uses

Chapter 1 Study Notes - Users & Uses - Cash Flow...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
CHAPTER 1 STUDYNOTES 1 CH 1—ACOUNTING INFORMATION: USERS & USES POOL OF DATA FROM BUSINESS & FINANCIAL TRANSACTIONS FOR PERIOD OF TIME ACCOUNTANT ANALYZES & RECORDS FINANCIAL DATA OF VARIOUS EVENTS SUMMARIZES INTO DIFFERENT KINDS OF REPORTS TO PROVIDE MEANINGFUL INFORMATION TO DECISION-MAKERS SAME DATA CAN BE SUMMARIZED & REPORTED IN DIFFERENT WAYS DEPENDING ON TYPES OF DECISIONS TO BE MADE & TYPES OF USERS (DECISION-MAKERS) FINANCIAL ACCOUNTING MANAGERIAL ACCOUNTING Users Outsiders Current shareholders Potential investors (shareholders) Market analysts Creditors—banks, suppliers Government agencies—for example Securities & Exchange Commission Internal Revenue Service State Taxation Authorities Internal Management at various levels to make decisions such as: Expansion Discontinuing product line or division Budgeting Pricing Bonuses Reports Issued: Financial Statements Balance Sheet Income Statement Statement of Retained Earnings
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Cash Flow Statement Accompanying Footnotes Government Reports Tax Return 10-K Whatever kind of report that provides info relevant to decision at hand CHAPTER 1 STUDYNOTES 2 Governed by: Financial Statements--Generally Accepted Accounting Principles (GAAP) Pronouncements issued by Financial Accounting Standards Board (FASB) GAAPBible of accounting established by FASB Accounting principles governed by certain basic concepts & principles reliability (objectivity), historical cost, going-concern, stable monetary unit see textbook Government ReportsCongress, State legislatures, government agencies (eg IRS, SEC) Professional managerial literature & studies (no governing body or law) Notesame basic pool of data, the accounting records, is used by both financial & managerial accounting; it is the compilation, summarization and kinds of reports issued that is different...
View Full Document

This note was uploaded on 04/10/2008 for the course MGA 201 taught by Professor Anderson during the Fall '08 term at SUNY Buffalo.

Page1 / 2

Chapter 1 Study Notes - Users & Uses - Cash Flow...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online