ACCT 001 Lecture Notes - Lecture 1: Cash Flow, Financial Statement, Share Capital

• School: College of The Sequoias
• Department: Accounting (ACCT)
• Course: ACCT 001
• Professor: cooper

Document Summary

Introduction to financial accounting & key financial statements. Accounting is the process of identifying, measuring, recording and communicating economic information to assist users to make decisions. There are 2 separate accounting systems: financial accounting system periodic financial statements and related disclosure. Designed for extern decision makers: managerial accounting system detailed plan and continuous performance reports. Financial accounting focuses on the provision of information to users external to the enterprise. Focused on reporting financial position and financial performance. An annual report is a magazine that contains a lot of descriptive information about the company and general purpose financial statements. Income statement financial performance of an enterprise over a period of time: has the entity used its resources efficiently and effectively, profit and loss statement (p&l) Cash flow statement: cash inflows and cash outflows. Notes to the financial statements i. e. additional details to readers. Reports the financial position of an entity at a point in time.