ARBUS101 Lecture Notes - Lecture 8: Net Income, Inventory Turnover, Accrual
4 Apr 2017
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Document Summary
Topics for discussion: role of accounting and financial information, disciplines within the accounting profession, accounting vs. bookkeeping and technology used, financial statements, accounting rules and principles in reporting financial information, ratio analysis. Accounting: recording, classifying, summarizing and interpreting financial events. Shareholder: actual owners of a portion of a company share is ownership. Stakeholder: people affected by the actions of the company. Consider some internal stakeholders: marketing staff, operations staff. Consider some external stakeholders: investors, suppliers, creditors, government. Tax accounting: government and not-for-profit accounting, managerial accounting: provide information to managers inside the company to assist in decision making. Financial accounting: information for stakeholders outside the company. Annual report: a yearly statement of the financial condition, progress and expectations of a company. Compliance (auditing): reviewing the records a company used to prepare financial statements. Government: public sector financial standards and sharing information with taxpayers. Not-for-profit: i. e. charities and making financial information available to donors.
