Financial Accounting Decisions

Financial Accounting Decisions - goodwill Liabilities =...

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Financial Accounting Decisions 13:37 Misstatements Errors Accidents Fraud Intentional Materiality Being significant or relevant enough to affect a decision Uncertainty When a company sells something to somebody on an account GAAP Generally accepted accounting principles Accounting bible Set by FASB Financial Accounting Standards Board IFRS International Financial Reporting Standards Another set of rules SEC also has power in setting financial rules, and always overrules in disagreement  with FASB Value investors Look at assets first Growth investors Look at earnings momentum Earnings the same as net income (revenue – expenses) Assets = economic resources
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Cash, accounts received, inventory, land, machinery, equipmen, patents, copyrights, 
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Unformatted text preview: goodwill Liabilities = creditors claims Accounts payable, taxes payable, notes payable, salaries payable, unearned rent, bonds payable Revenues = increases or inflows of net assets Increase from increased assets or decreased liabilities Sales revenue, interest revenue, rent revenue, dues revenue, gain Expenses = outflows or decreases in net assets Increase if assets go down or liabilities go up Cost of goods sold, depreciation expense, rent expense, interest expense, loss Net assets = (total assets total liabilities) or OE 13:37 13:37...
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This note was uploaded on 02/22/2012 for the course BUSI 101 taught by Professor Skender during the Spring '08 term at UNC.

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Financial Accounting Decisions - goodwill Liabilities =...

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