[ACG 3101] - Final Exam Guide - Comprehensive Notes for the exam (22 pages long!)
Document Summary
Financial accounting: provides financial information to various external users: primary focus is on profit oriented companies to their present and potential investors and creditors. Financial intermediaries: provide advice to investors and creditors and/or make investment- credit decisions on their behalf. The primary means of conveying financial information are: the balance sheet (statement of financial position, the income statement (statement of operations, the statement of cash flows, the statement of shareholder"s equity. Financial reporting: the process of providing financial information to external users. Capital markets: a mechanism that fosters efficient allocation of resources. Initial market transaction: provides new as when a corporation sells shares of stock/bonds to individuals or other entities that want to invest in it. Secondary market transactions: subsequent transfer of stock/bonds between investors: corporations receive no new cash, help establish market prices. The investment-credit decision from a cash flow perspective. Net operating cash flow: a measure produced by cash basis accounting.
