BMGT 340 Chapter Notes - Chapter 2: Onet.Pl, Fixed Asset, Historical Cost
5 Jun 2016
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Annual report (10 k): yearly summary of business, accompanying or including financial statements, sent by. Private companies make financial statements often but don"t share with public usually. Generally accepted accounting principals: common set of rules and standard format for public companies to use when they prepare their financial reports. Makes it easier to compare financial results of different firms. Auditor: natural third party, corporations are required to hire, checks a firm"s annual financial statements to ensure they"re prepared according to gaap and provides evidence to support the reliability of the information. Every company is required to produce 4 financial statements: balance sheet, income statements, statement of cash flows, statement of stockholders" equity. List of firm"s assets and liabilities that provides a snapshot of firm"s finical position at a given point. Left side: assets-list the firm"s cash, inventory, property, plant and equipment and any other investments the company has made.
