SMG AC 221 Chapter Notes - Chapter 1: Ticker Symbol, Dow Jones Industrial Average, Financial Statement
27 Jan 2016
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Document Summary
How companies communicate financial info to employees and public. It"s a process of identifying, recording, and summarizing information and reporting it to decision makers. Doesn"t always answer every question, but it gives insights. Dow jones industrial average (djia): most commonly reported stock market index in the world. 30 companies in it such as mcdonalds, coca cola, and microsoft. Ticker symbol is the common shorthand used to identify these companies. Industrial average used to be just add up values of all stocks and divide to get the average but now the process is much more complex. Djia falls when a companys profits fall and economy weakens. A company"s accounting system is the series of steps it uses to record financial data and convert them into informative financial statements. Every business has an accounting system from schools to credit card companies. Financial is for external decision makers while management is for internal decision makers.
