Chapter 2 Part 1 notes - Chapter 2 Part I Instructor Kenny...

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Chapter 2 Part I Accounting as Information Instructor – Kenny Zheng AIM 2301 Intro Financial Accounting
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Financial Reporting The Process of preparing and presenting financial information, to include: The four financial statements: Income Statement Statement of Changes in Shareholders’ Equity Balance Sheet Statement of Cash Flows
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The Financial Accounting Standards Board Establishes the guidelines for financial statements. These broad principles are referred to as Generally Accepted Accounting Principles. The goal is to increase the quality and usefulness of the information
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It takes good information To make good decisions
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Is the Information Useful? It must be capable of making a difference in the decision making process
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Qualities of Accounting Information Information is only good if it is: Relevant Reliable Comparable Consistent
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Relevant Information is…. Important to the company Has the potential to influence decisions Provided on a timely basis “I hear that our neighbor is selling their land” “We would be able to expand our operations…” “Someone else bought it this morning “No longer relevant”
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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.

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Chapter 2 Part 1 notes - Chapter 2 Part I Instructor Kenny...

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