Recitation_1 - the public The Financial Accounting Standards Board is the private group that sets both broad and specific principles The

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Users of Accounting Information External Users Lenders Shareholders Governments Consumer Groups External Auditors Customers Internal Users Managers Officers Internal Auditors Sales Staff Budget Officers Controllers
Background image of page 1

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

View Full DocumentRight Arrow Icon
Users of Accounting Information External Users Financial accounting provides external users with financial statements. Internal Users Managerial accounting provides information needs for internal decision makers.
Background image of page 2
Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP) . Generally Accepted Accounting Principles Relevant Information Affects the decision of its users. Reliable Information Is trusted by users. Comparable Information Used in comparisons across years & companies.
Background image of page 3

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

View Full DocumentRight Arrow Icon
The Securities and Exchange Commission is the government group that establishes reporting requirements for companies that issue stock to
Background image of page 4
Background image of page 5

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

View Full DocumentRight Arrow Icon
Background image of page 6
Background image of page 7

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

View Full DocumentRight Arrow Icon
Background image of page 8
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: the public. The Financial Accounting Standards Board is the private group that sets both broad and specific principles. The International Accounting Standards Board (IASB) issues inter-national standards that identify preferred accounting practices in other countries. The IASB does not have authority to impose its standards on companies. 1-4 Accounting Principles Net income is the difference between Revenues and Expenses. The income statement describes a company’s revenues and expenses along with the resulting net income or loss over a period of time due to earnings activities. Income Statement The net income of $2,200 increases Retained Earnings by $2,200. Statement of Retained Earnings The Balance Sheet describes a company’s financial position at a point in time. Balance Sheet Statement of Cash Flows...
View Full Document

This note was uploaded on 06/16/2011 for the course BUSI 100 taught by Professor Na during the Spring '10 term at University of North Carolina School of the Arts.

Page1 / 8

Recitation_1 - the public The Financial Accounting Standards Board is the private group that sets both broad and specific principles The

This preview shows document pages 1 - 8. Sign up to view the full document.

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