MGMT 1B Lecture 2: Management 1B- Week 1 Notes
Document Summary
Week 1: accounting is an information system: users, creditors: how big a risk you are. Investors: determine when to buy and when to sell: management: to help make decisions, government: gao, irs, regulatory agencies, advisors. Cpa: education: 5th year of education, experience: work for 1 year under cpa, quiz: cpa exam, accounting minor. Two movements in accounting: away from historical cost to fair value, convergence between us gaap (fasb) and ifrs (iasb) Qualitative characteristics of financial information: relevancy: information is relevant if it in uences actions of decision makers. Tuesday, january 10, 2017: reliability: information accurately depicting conditions, comparability: usefulness is enhanced if we can compare our nancial statement with prior year nancial statements and with other companies". Nancial statements: consistency: we should apply the same accounting principles every year. We are allowed to change methods, but we must state the reason for the change and the effect of the change.
