MGMT 20000 Lecture Notes - Lecture 1: Balance Sheet, Income Statement, Management Accounting

• School: Purdue University
• Department: Management
• Course: MGMT 20000
• Professor: Frank Kane

Document Summary

Exam 1 september 24 @ 8 pm. Exam 2 november 1 @ 8 pm. No class: september 24, october 8, november 2. Accounting: information system, identifies & measures business activities, processes information into reports, communicates results to decision-makers, two branches of accounting, financial, managerial. Financial reports to external parties for decision making. Understand the business activities that financial accounting measures. Accounting systems and the storage of financial information. Practice using accounting systems and how financial information is stored in accounts. Understand the business activities that financial accounting measures: classify transactions as operating, investing and financing activities iclicker question: Which is recorded into the accounting system first: agreement signed, truck delivered, invoice received, cash payment. 3 categories of storage units: assets, liabilities, equity. Accounting equation (relationship between assets, liabilities & equity) assets = liabilities (creditors" claims) + equity (owners" claims) resources claims to resources assets (resources) liabilities (creditors" claim) = equity (owners" claims)