MGMT 1A Chapter Notes - Chapter CR: Cash Flow, Legal Personality, International Financial Reporting Standards
Document Summary
Consists of keeping a systematic, chronological diary of events (measured in terms of money: communicates the collected information to interested users, through accounting reports (i. e. financial statements) (cid:314) prepare accounting reports and analyze / interpret for users. External users include: investors, creditors, taxing authorities, regulatory agencies, customers, labor unions investors (owners) - use accounting information to decide whether to buy, hold, or sell ownership shares of a company. Creditors (such as suppliers & bankers) - use accounting information to evaluate the risks of granting credit or lending money. Securities and exchange commission (sec): an agency of u. s. government to administer laws & regulations relating to the exchange of securities and the publication of financial information by u. s. businesses (established in 1993) Securities act (of 1933) - government began to oversee ipo filings (regulates the offer and sale of securities) Securities exchange act of 1934 - oversees u. s. financial markets and accounting standard-setting bodies.
