BUS-A 100 Lecture Notes - Lecture 2: Financial Accounting Standards Board, Financial Statement, Form 10-Q
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BUS-A 100 Full Course Notes
Verified Note
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Document Summary
Accounting: recording of business transactions; preparation of reports to summarize the transactions and analyzing the financial information. May be made available both inside and outside the company. Accounting is based on debits and credits. Impact of financial statements: looking at financial statements in a top-down approach; paying particular attention to how various transactions impact the financial statements. Financing activities: transactions that raise funds for the company to expand or operate. Investing activities: transactions in which the company is investing in assets that it will keep in the business to use in its operations. Operating activities: all of the other transactions that a business engages in which cannot specifically classified as financing or investing. For example: payment of rent, salaries, insurance expenses. The first thing that a company needs to do, while starting a business, is to raise money so as to begin operations. Right to vote for the directors" of the company.
