financial accounting - CH 1 The Financial Statements...

Info iconThis preview shows pages 1–2. 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
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: CH 1 The Financial Statements Accounting is the language of business. Accounting is a system that collects and processes (analyzes, measures, and records) financial information about an organization and reports that information to decision makers. WHAT IS FINANCIAL ACCOUNTING? Financial accounting is a process of identifying, recording, and communicating the economic events of interest to external users. 1) Identifying events: sale, purchase, borrowing, etc. 2) Recording: journal entries, T-accounts, trial balance, etc. 3) Communicating: income statement, balance sheet, statement of retained earnings, statement of cash flows Financial Accounting System Preparation of four basic financial statements and related disclosures Managerial Accounting System Preparation of detailed plans, forecasts, and performance reports Internal Decision Makers Managers throughout the organization External Decision Makers...
View Full Document

Page1 / 4

financial accounting - CH 1 The Financial Statements...

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