Chapter 1 lecture notes - Lecture Week 1 Part 1 –...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon

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

View Full DocumentRight Arrow Icon

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

View Full DocumentRight Arrow Icon

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

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

Unformatted text preview: Lecture Week 1 Part 1 – Financial Accounting Basics Instructor – Kenny Zheng AIM 2301 Intro Financial Accounting Lecture Outline • Introduction to Accounting • Business Activities and Financial Statements Overview • Balance Sheet Valuation • Income Statement Valuation 1 • Accounting • Accounting is a system of measuring and reporting results of business activities to interested users. Introduction to Accounting • Who are users of financial statements? • What decisions are faced with? • What type of accounting report would be useful in these decisions? 2 Introduction to Accounting Users Decisions Reports Investors • Buy or sell stocks • Income Statement (profitability) Bankers • Lending • Statement of Cash Flows (liquidity, solvency) • Balance Sheet (solvency) Managers • Keep or drop a division • New product pricing • Division Profitability Report • Product Cost Report Suppliers • Credit decision • Statement of Cash Flows (liquidity, solvency) • Balance Sheet (solvency) • Income Statement (profitability) Employees • Stay or leave the company • Financial Statements Regulators / Government • Taxes • Income Statement Competitors • Benchmarking • Financial Statements ACCOUNTING AS AN AID TO DECISION MAKING Some examples 3 Managerial Accounting Financial Accounting Internal Users Tailored reports External Users Standardized financial statements based on GAAP (generally accepted accounting principles) Introduction to Accounting 4 Introduction to Accounting...
View Full Document

This note was uploaded on 11/24/2009 for the course BA 2301 taught by Professor Mattpolze during the Fall '08 term at University of Texas at Dallas, Richardson.

Page1 / 15

Chapter 1 lecture notes - Lecture Week 1 Part 1 –...

This preview shows document pages 1 - 6. Sign up to view the full document.

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