ECON 4

ECON 4 - ECON 4. Financial Accounting 1. Cash&S.T....

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ECON 4. Financial Accounting 1. a. *try not to use decimals eh? Or only 2 significant figures 2. Wednesday 3/30/11 i. Scarcity: we need what we don’t have ii. Life cycle: time changes everything iii. Risk. Shit happens iv. Information helps b. Economics: Decisions about the use of resources. c. Finance: decisions about the intertemporal allocation of money, lending&borrowing, investing. d. Risk management. Decisions about the management purchase or sale of risk. i. Would u pay someone to take the risk for you? e. Banks do financial intermediation i. Households make deposits sell deposits to banks. ii. Banks packages deposits and sell the packages as loans iii. Companies borrow from banks, they purchase the loans iv. Banks collect the principal and interest to pay interest to households v. Banks earn the interest rate spread. f. Accounting i. An information system for recording and reporting business financial performance and financial position 1. Control (bookkeeping/internal controls.) 2. Financial reporting 3. Auditing > making sure everyone doing accounting is fine 4. Tax-planning. 5. Management and information systems consulting.
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6. Forensic accounting and litigation support. a. Legal system courts decide how much the worth 7. Credentials. a. CPA, EA, CFE, CMA, Controller- < top Job Title. g. Chapter 1, 8, B>< E optional. h. Accounting firms i. The Big Four 1. 2. 3. KPMG 4. Price-Coopers (PWC) 5. Failed Arthur Anderson…. Peace ii. Second tier. 1. Century “CBIZ” 2. Moss Adams. . 3. i. Purpose of Financial Accounting i. Financial Performance, Profits via income statement. ii.
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This note was uploaded on 09/13/2011 for the course ECON 4 taught by Professor Willoughby during the Spring '08 term at UCSD.

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ECON 4 - ECON 4. Financial Accounting 1. Cash&amp;S.T....

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