Definition of Accounting

Definition of Accounting - Definition of Accounting...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Definition of Accounting
Background image of page 1

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

View Full DocumentRight Arrow Icon
Accounting is a process that  1.   identifies identifies , 2. 2.     measures measures , and  3 communicates communicates  financial  information about an  4.   entity entity  to  5.   interested users interested users .
Background image of page 2
Transactions  = events that change  a  company’s financial position.  Examples:  Purchase land Sign a contract Effect financial position:      Assets = Liabilities + Equity
Background image of page 3

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

View Full DocumentRight Arrow Icon
1. A dollar amount must be  attached to the transaction in  order for it to be recorded. 2. Objective amount = historical cost (original  cost).
Background image of page 4
Relevant financial information is provided     primarily through financial statements  and  related disclosure notes .  Balance Sheet  Income Statement  Statement of Cash Flows  Statement of Shareholders’ Equity
Background image of page 5

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

View Full DocumentRight Arrow Icon
Three types of business entities: 1. Sole Proprietorship 2. Partnership 3. Corporation
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/15/2011 for the course BUAD 2040 taught by Professor Amy during the Spring '11 term at Ohio State.

Page1 / 13

Definition of Accounting - Definition of Accounting...

This preview shows document pages 1 - 7. Sign up to view the full document.

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