BUSN 1101 Lecture Notes - Lecture 17: Inventory Turnover, Public Company Accounting Oversight Board, Accrual

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: William Matthews

Document Summary

Chapter 12: the role of accounting in business. Stakeholders: parties who are interested in the activities of the business because. Accounting: measuring and summarizing business activities, interpreting financial information, and communicating the results to management and other decision makers. Management accounting provides information to decision makers inside the organization to help operate the business: reports tailored to the needs of individual managers. Financial accounting furnishes information to individuals and groups inside/outside the organization to assess the firm"s financial performance: financial statements. Statement of cash flows: generally accepted accounting principles (gaap) Income statement: reports a company"s sales, expenses, and net profit or loss: revenues and expenses, cost of goods sold, operating expenses, gross profit, net income. Balance sheet reports a company"s assets, liabilities and owners" equity (owners" investment in business) at a specific point in time: assets business resources, liabilities debts owed to outside entities, owner"s equity amount invested. Current- convert to cash within a year.