BUS 1 Chapter Notes - Chapter 3: Financial Accounting Standards Board, Income Statement, Cloud Computing
Document Summary
To operate effectively, businesses must have a way to track income, expenses, assets, and liabilities in an organized manner. Accounting involves collecting, recording, classifying, summarizing, reporting, and analyzing a firm"s financial activities according to a standard set of procedures. The financial reports resulting from the accounting process give managers, employees, investors, customers, suppliers, creditors, and government agencies a way to analyze a company"s past, current, and future performance. Public accountants work for independent firms that provide accounting services (financial repot preparation and auditing, tax return preparation, and management consulting) May prepare financial statements, tax returns, and management reports. Private organization that is responsible for establishing financial accounting standards used in the us. Sarbanes-oxley act (sox) 2002: designed to address public"s lack of trust in corporate america, redefines the public corporation auditor relationship and restricts the services auditors can provide to clients. Liabilities are the amounts a firm owes to creditors.
