Chapter 16

Chapter 16 - Chapter 16 Tuesday 6:46 PM...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Understanding Accounting and Financial Statements Accounting is the process of measuring, interpreting, and communicating financial information to support internal and external business decision making - Accounting Open book management: sharing sensitive financial information with employee and teaching them how to understand and use financial statements - Viewing financial information may help them better understand how their work contributes to the company's success - Outsiders use financial data to evaluate investment opportunities - Open Book Management Financing activities provide necessary funds to start a business and expand it after it begins operating - Investing activities provide valuable assets required to run a business - Operating activities focus on selling goods and services, but they also consider expenses as important elements of sound financial management - Business Activities Involving Accounting Public accountants: provide accounting services to individuals or business firms for a fee - Management accountants: provide timely, relevant, accurate, and concise information that executives can use to operate their firms - Government and not- for- profit accountants - Accounting Professionals Generally accepted accounting principles (GAAP): encompass the conventions, rules, and procedures for determining acceptable accounting practices at a particular time - Financial accounting standards board (FBSB): is primarily responsible for evaluating, setting, or modifying GAAP in the U.S. - Created the public accounting oversight board, which sets audit standards and investigated and sanctions accounting firms that certify Sarbanes- Oxley Act: responded to cases of accounting fraud
Background image of page 1

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

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/05/2011 for the course BUS 100 taught by Professor Reeves during the Spring '11 term at Rutgers.

Page1 / 6

Chapter 16 - Chapter 16 Tuesday 6:46 PM...

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