MIS 302F Study Guide - Midterm Guide: Starbucks, Financial Statement, Income Statement

• School: UT-Austin
• Department: Management Information Systems
• Course: MIS 302F
• Professor: Tuttle Clint

Document Summary

Revenues and expenses are temporary owners" equity accounts that count changes in the wealth that investors have invested in the company for the current period only. Throughout the accounting period, the company will engage in hundreds or thousands of transactions (millions for very large companies like starbucks). As a result of focusing on wealth, the accountant must measure the value of all of the company"s assets and liabilities, at least all that are reasonably measurable. The four financial statements are related to one another and provide information a(cid:271)out a (cid:272)o(cid:373)pa(cid:374)y s perfor(cid:373)a(cid:374)(cid:272)e for a period of time (usually a quarter or year). To help insure that accounting information is accurate, managers are constrained in several ways by how they are permitted to report to outsiders. First, there are accounting rules, referred to as generally accepted accounting principles (gaap), that managers are required to follow.