ACCT 201 Lecture Notes - Lecture 4: Public Company Accounting Oversight Board, Financial Accounting Standards Board, Retained Earnings
Document Summary
Please read section 3. 1 the stockholder"s report. Generally accepted accounting principles- guidelines used to prepare financial reports. Sox 2002- enacted to eliminate the disclosure and conflict of interest problems. Established the public company accounting oversight board- oversees auditors of public corporations. Protect interest of investors and prepare informative & fair audit reports financial activities during the past year. Publically owned corporations w > million in assets or > 500 stockholders are required to register with the sec (governs sale and listing of securities) Must provide stockholders with an annual stockholders report- summarizes firm"s. Letter to stockholders: primary communication of management; describes events that had biggest effect on firm this year. 4 key financial statements: income statement- financial summary of operating results during a specified period (fiscal year) Sales revenue- total dollar amount of sales during this period. Gross profit- amount remaining for operating, financial, and tax costs. Less: operating expenses- selling, general and administrative, lease and depreciation exp.
