33:010:272 Lecture Notes - Lecture 1: Healthsouth, Financial Accounting, Financial Statement

• School: Rutgers University
• Department: Accounting
• Course: 33:010:272
• Professor: O' R O U R K E

Document Summary

Accounting consists of three basic activities it identifies, records, and communicates the economic events of an organization to interested users. (1). Identifies; a company identifies the economic events relevant to its business. E. g. economic events: sale of snack chips by pepsico, the provision of telephone services by. At&t, and the payment of wages by ford motor company. (2). Records; provide a history of its financial activities. Recording consists of keeping a systematic, chronological ( ) diary of events, measured in dollars and cents. (3). Communicates; communicates the collected information to interested users by means of accounting reports (e. g. Internal users of accounting information are managers who plan, organize, and run the business. (marketing managers, production supervisors, finance directors, and company officers). Managerial accounting provides internal reports to help users make decisions about their companies. External users are individuals and organizations outside a company who want financial information about the company. Two most common types of external users: (1).