FinAccounting 1Spr08

FinAccounting 1Spr08 - SM299-Management as a System...

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

View Full Document Right Arrow Icon
SM299-Management as a System Financial Accounting I Balance Sheet, Income Statement Professor J. Robb Dixon building on earlier presentations by Professors Eng Wu and Peter Arnold
Background image of page 1

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

View Full DocumentRight Arrow Icon
There are 236 companies represented here in the auditorium. Who has the best company? How do you answer this question? Who cares? Lots of people Suppliers Managers/employees Customers Investors Government…
Background image of page 2
What is Accounting? Two Basic Forms Managerial : Accounting info for internal decision making on: Marketing - product, place, price and promotion Operations - outsourcing, capital investment, inventory Control and performance measurement No formalized accounting reports Financial : Accounting info for external users on: Financial status of companies Performance and profitability Financial soundness or otherwise To afford comparability, formal accounting rules Very formal accounting reports Enron Tyco WorldCom Cendant Brocade Comm
Background image of page 3

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

View Full DocumentRight Arrow Icon
Learning Financial Accounting Formal structure – like learning a new language Guidelines for learning success : 1. Persevere – lots of practice - do not give up!! 2. Reason rather than memorize – there is logic embedded here. Some Misconceptions/Barriers 1. Accounting is merely a number crunching exercise. 2. Computers are making accountants obsolete. 3. I am a [ non-accounting ] major; who needs accounting? Some Important Fundamentals 1. Companies like to make money – showing profits good 2. Companies do not like to pay taxes – showing profits bad
Background image of page 4
What is Financial Accounting? Bookkeeping? is only recording data (in the right Precise & objective measurement? almost all accounting numbers are influenced by estimates Report market value of companies? use historical concept, record costs (assets, equity); liabilities (mixed). Book Value. Primary objective? provide economic information to external users .
Background image of page 5

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

View Full DocumentRight Arrow Icon
Characteristics Relevance Reliability accurate, unbiased, verifiable Comparability across companies Consistency across time Accounting Rules (GAAP) - SEC, FASB, AICPA
Background image of page 6
Financial Statements Balance Sheet Snapshot of Business Income Statement Profit/Loss over a period Statement of Retained Earnings Undistributed income Statement of Cash Flows Where $ comes from / goes to
Background image of page 7

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

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

This note was uploaded on 04/07/2008 for the course SM 299 taught by Professor Dixon during the Spring '08 term at BU.

Page1 / 24

FinAccounting 1Spr08 - SM299-Management as a System...

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