ORIE_3150 second one draft - ORIE3150 Lecture#2 August 30,...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon
ORIE 3150 Lecture #2 August 30, 2011
Background image of page 1

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

View Full DocumentRight Arrow Icon
Announcements You are required to have a copy of the correct textbook for this class. Wednesday section will start at 2:55 PM.
Background image of page 2
Starting joke.  
Background image of page 3

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

View Full DocumentRight Arrow Icon
Accounting: not intended to deceive A business may involve complicated financial transactions, and there is simply no way to understand these transactions without accounting knowledge and careful study. While financial accounting reports can be complicated, obfuscation or deception is not the intent. May have to do a little digging.
Background image of page 4
There are four financial statements. They are not independent of one another, but each is linked to the others. Keilani Ricketts 2011 USA National Team
Background image of page 5

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

View Full DocumentRight Arrow Icon
Justin Verlander Detroit Tigers 20 - 5, 2.38 ERA What questions do the financial statements answer?
Background image of page 6
Financial Statements 1. What is the company’s financial status? 2. What were the company’s operating results for the past period? 3. How did the company obtain and use cash during the past period ?
Background image of page 7

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

View Full DocumentRight Arrow Icon
Balance Sheet Reports the resources of the company (assets), the company’s obligations (liabilities) and the stockholders’ residual ownership portion (stockholder’s equity). A snapshot, it is only true or accurate at an instant in time. Usually this is at the end of the year or quarter-year.
Background image of page 8
The balance sheet is a detailed version of the accounting equation: Assets = Liabilities + Stockholder’s Equity A = L + SE Assets: economic resources of the firm Liabilities: financial obligations to non-owners Stockholder’s Equity: a. Contributed capital: represents owner’s investments b. Retained earnings: represents accumulated profits and losses from past years.
Background image of page 9

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

View Full DocumentRight Arrow Icon
Income Statement Reports the difference between revenues and expenses over the past time period (either year or quarter). This is known as net income. If this difference is a positive number, it is a profit. If this difference is a negative number, it is a loss . A historical number! Also called the “P&L” (for “profit and loss”).
Background image of page 10
Statement of Cash Flows 1. Reports the various amounts of cash collected and used over the past period. 2. Classifies each collection or use into either operating, financing, and investing activities.
Background image of page 11

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

View Full DocumentRight Arrow Icon
Statement of Retained Earnings Summarizes the effects of income on the retained earnings.
Background image of page 12
Image of page 13
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/30/2011 for the course ORIE 3150 at Cornell University (Engineering School).

Page1 / 42

ORIE_3150 second one draft - ORIE3150 Lecture#2 August 30,...

This preview shows document pages 1 - 13. Sign up to view the full document.

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