ACCT 2101 Lecture Notes - Lecture 1: Income Statement, Net Income, Cash Flow

• School: University of Georgia
• Department: Accounting
• Course: ACCT 2101
• Professor: Bhandarkar

Document Summary

Intro to accounting and financial statements | lecture 1. Increased licensing fees, decreased personal control: service services, merchandising products, manufacturing products. Importance of accounting: accounting is the language of business. What is accounting: accounting is a system that identifies, records, communicates info that is relevant, reliable, and comparable to help users make better decisions. Internal auditors: external, lenders, shareholders, customers, government, external auditors. Types of accounting: financial accounting: provides info primarily to external users via financial statements, managerial accounting: provides info exclusively to internal users via internal reports. Accounting standard setting organizations: securities and exchange commission (sec): gov agency that can establish reporting req and set gaap for companies that issue stock to the public, financial accounting standards board (fasb): private group that sets accounting principles. International accounting standards board (iasb): issues international financial reporting. Standards (ifrs) that identify preferred accounting practices that can be accepted by companies globally.