BUSN 1100 Chapter Notes - Chapter 17: Current Liability, Financial Accounting, Financial Statement

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1100
• Professor: Crittenden William

Document Summary

Accounting: collecting, recording, classifying, summarizing and interpreting financial transactions. Provides numbers and information for managers inside firm. Ex: what are our most profitable products on. What have we spent the most money. How much inventory do we have? people outside the firm. 1)balance sheet how much a company has: what we have- what we owe (net worth of company) Assets-liabilities=owner"s equity: income statement how much a company earns, revenue-expenses= profit (or loss) 3) statement of cash flows where the company"s money comes from and where its going (net change in cash) Operating, investing and financing activities affect cash over a period of time. Financial statements must follow gaap by the fasb. Also, the ifrs standards, which were also created by the fasb. , generally accepted accounting principles, put in place. Monetary value of what a firm receives for goods sold, services rendered and other payments such as rent (bottom line) The net income after costs, expenses, taxes, dividends, etc.