COMM 293 Lecture Notes - Lecture 5: Financial Statement Analysis, Cash Flow Statement, Financial Statement
Document Summary
Overview of accounting concepts: concepts emphasized in chapter 2, objective of financial reporting, qualitative characteristics of accounting information, accounting assumptions, basic accounting principle, elements of the classified statement of financial position. Financial statement amounts: nature of business transactions, accounts, dual effects, balancing the accounting equation, principles of transaction analysis, analyzing sun-rype"s transactions. How do companies keep track of account balances: the direction of transaction effects, analytical tools, transaction analysis illustrated, classified statement of financial position, some misconceptions, the journal entry, the t-account. Understand the objective of financial reporting, the qualitative characteristics of accounting information and the related key accounting assumptions and principles. Define the elements of a classified statement of financial position. Identify what constitutes a business transaction and recognize common account titles used in business. Apply transaction analysis to simple business transactions in terms of the accounting model: Determine the impact of business transactions on the statement of financial position using two basic tools: journal entries and t-accounts.
