2.4 - Today's Topic Financial Accounting Information for...

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Today’s Topic PLEASE TURN OFF CELL PHONES Financial Accounting Information for investor decision-making in accountability situations This class will: Define the data (= transactions), and  Describe the measurement application (= accounting system) used by financial accounting
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Fig. 71 Overview of Accounting and Decision Making CONTEXT PROCESS DATA INFORMATION DECISION SYSTEM T R A N S A C T I O N S Accounting System Financial Statements Income, Value Investment Decision Invest or not GAAP Market Price Investment Model
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Fig 72. TRANSACTIONS Accounting assumes “fair exchange Willing buyer and seller benefit = sacrifice Measure and record both
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Fig. 73 CONTEXT PROCESS DATA INFORMATION DECISION SYSTEM T R A N S A C T I O N S Accounting System Financial Statements Income, Value Investment Decision Invest or not GAAP Market Price Investment Model
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Fig. 74 ACCOUNTING SYSTEM CAPTURING EVENTS AND PROCESSING DATA: ACCOUNTING INFORMATION SYSTEMS Chart of accounts Documentation Double Entry Summarization
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Fig. 75 Double-Entry Terminology   Debit     Credit Account Title T- Account Debit Credit
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Fig. 76 Debits and Credits = + Debit Credit Debit Credit Debit Credit + - - + - + Assets Liabilities Equity Debit = Left Credit = Right Asset accounts increase increase on the left or debit debit side and decrease decrease on the right or credit credit side. Liability accounts
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2.4 - Today's Topic Financial Accounting Information for...

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