BUSA 100 Lecture Notes - Lecture 5: Ikea, Groupon, Hollywood Accounting
Document Summary
Studiocanal sues universal over mis-accounting (10s of millions of $) for much of their revenue during a joint project. Traditionally an art of recording, classifying and summarizing, in a significant manner, transactions and events in terms of money. The vehicle to report financial info with its own set of rules and terminologies. Identifies, measures, analyses, and communicates this financial info to various users (managers, analysts, shareholders, government) Definition of accountant: someone who conducts financial reporting, tax planning, budgeting for organizations provide financial info that is useful and reliable to management and investors. We have been accounting jargons without knowing! Capital budgeting: cost vs benefit of choosing between one thing or another because you only have enough money to do one thing! (choosing between dress/concert) Cost analysis: look at total cost and compare prices between items (choosing phone plan) Net income: how much do they have left to pay employees bottom-line of the accounting statement!
