AFM131 Lecture Notes - Lecture 6: Organic Cotton, Financial Accounting, Financial Statement

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM131
• Professor: Bob Sproule

Document Summary

Impossible to manage a business without being able to read, understand and analyze accounting reports and financial statements (which reflect a business"s health) Accounting: the recording, classifying, summarizing and interpreting of financial events which help evaluate financial condition and the operating performance. Accounting system: method used to record and summarize accounting data into reports. Managers and other stakeholders of a business use this information in order to make informed decisions. Financial accounting info prepared for external users total company used by senior level managers and external users reports historical results with comparatives. Must be provided by all public companies included in a company"s annual report yearly statement of financial condition, progress, and expectations of company. Compliance involves review and evaluation of accounting records both internally and externally. Public accountants -- independent audit: evaluation and unbiased opinion of accuracy of financial statements: required of all public corporations forensic accounting focuses on identifying a company"s fraudulent activities.