Lecture 1 Introduction to Financial Statements

Lecture 1 Introduction to Financial Statements - Click to...

Info iconThis preview shows pages 1–7. 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

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

View Full DocumentRight 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: Click to edit Master subtitle style © Xiaohui Liu, 2009 Lecture 1 Introduction to Financial Accounting © Xiaohui Liu, 2009 © Xiaohui Liu, 2009 OBJECTIVES: Be able to answer the following questions: ◦ What is accounting? ◦ What are different types of accounting?  Difference between financial accounting and management accounting. ◦ What are financial statements? ◦ What are the relationship of these statements? ◦ How does economic activities affect statements? © Xiaohui Liu, 2009 © Xiaohui Liu, 2009 A simple illustration of Raises Capital © Xiaohui Liu, 2009 Invests Capital Earns Return Reinvests Pays dividend Owner’s Investment Borrow Inventory Office Supplies Cash Revenue- Expense =Net Income (or Loss) © Xiaohui Liu, 2009 Parties participate in the Owners Creditors Suppliers Customers Managers Investors © Xiaohui Liu, 2009 © Xiaohui Liu, 2009 Accounting as an Aid to Decision Making Accounting information is useful to anyone who makes decisions that have economic results. ◦ Owners: Which employees are productive? ◦ Managers: Is the new product profitable? ◦ Potential Investors: Is this company a good investment? ◦ IRS : Is taxable income measured properly? © Xiaohui Liu, 2009 © Xiaohui Liu, 2009 What is Accounting? Accounting is the process of identifying, measuring and communicating economic information to various users. Accounting is the “language of business”....
View Full Document

This note was uploaded on 09/13/2011 for the course AIM 6305 taught by Professor L during the Fall '11 term at University of Texas at Dallas, Richardson.

Page1 / 21

Lecture 1 Introduction to Financial Statements - Click to...

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