ECON 4 Lecture Notes - Lecture 8: Bookkeeping, Deferral, Net Income
Document Summary
Midterm cheat sheet: fundamentals of accounting, the role of accounting i. ii. iii. iv. Creates a summary of company"s financial position and performance. Gives info to the relevant users about the company. A better understanding of what is going on with the business: types of accounting i. Financial standard reports for external stakeholders - used outside the company. For you to know what is going on in the company although you are an outsider: managerial custom reporting for internal use. Used inside the company to know where they stand iii. Tax accounting irs rules for the tax obligations: reporting and standards. 8-k current report, don"t need it unless something is wrong ii. Used in many places around the world: regulatory bodies i. ii. Iasb (works with ifrs: required financial statements i. ii. iii. iv. Measure of stocks in a snapshot time - tied to a specific date. Measure of flows over a certain time.
