ARBUS101 Lecture Notes - Lecture 6: Financial Statement, Trial Balance, Cash Flow Statement
16 Oct 2015
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Document Summary
Accounting is the recording, classifying, summarizing and interpreting of financial events to provide management and other interested parties with the financial information they need to make good decisions. Financial transactions include: buying and selling goods and services, acquiring insurance, paying employees and using supplies. Private accountants work for a single tim, gov agency or non-profit organization. Public accountants provide accounting services to individuals or businesses on a fee basis. Bookkeeping is part of accounting and includes the mechanical part of recording data. Accounting also includes classifying, summarizing, interpreting and reporting data to management. Methods of transferring cost of inventory sold to the income statement. Lifo = last in, first out liquidity ratios - have to do with short term debts leverage (debt) ratios - how much debt you have. 2: profitability (performance) ratios - operating success, activity ratios - how well you"re using your assets. A summary of the ledger that ensures all figures are balanced.
