[회계이원창]FinAcc lecture note (1) ch

[회계이원창]FinAcc lecture note (1) ch

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Financial Accounting Lecture Note (1), Spring 2009 Professor Won-Wook Choi, Yonsei School of Business Chapter 1 Introduction to Financial Accounting 1. What is accounting? The act of gathering and reporting of the financial history of an economic entity for various interest groups. Financial history: monetary information reported on the financial statements (balance sheet, income stmt, cash flow stmt). Economic entity: corporation, sole proprietorship, partnership, stocks listed on the exchange, stocks traded on the OTC market, manufacturers, merchandisers, service firms, profit-seeking organization, non-profit organization. Various interest groups: shareholders (majority, minority, current, potential), creditors (banks), regulators, tax authority managers, employees (labor union), analysts 2. How is financial history prepared on the accounting reports? Economic concepts – ideas that form the foundation of accounting reports. Financial values, wealth and economic income are used to measure the history. Accounting conventions – to implement economic ideas by setting the criteria (GAAP) for recognition (whether report or not), classification (where in the report), and valuation (by how much). Institutional context – incentives and environment that affect what people (managers, investors, auditors, regulators, and etc.) will do. 1
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3. Areas in accounting Financial accounting( ) Managerial accounting( ) Tax accounting( ) Auditing( ) Accounting information system( - ª * ) Government or non-profit organization accounting( - ª* ) Public accounting - auditing, tax, management advisory services Private accounting - financial, tax, cost, managerial accounting, financial forecasting, internal auditing,. .. Regulatory authority:
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This note was uploaded on 04/18/2010 for the course BUSINESS 231 taught by Professor Steven during the Spring '10 term at 카이스트, 한국과학기술원.

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[회계이원창]FinAcc lecture note (1) ch

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