01:198:170 Lecture Notes - Lecture 1: Net Income, Cash Flow, Income Statement

• School: Rutgers University
• Department: Computer Science
• Course: 01:198:170
• Professor: F Geraci

Document Summary

Knowledge of accounting is essential to any business. Identifies, records, and communicates the economic events of an organization to interested users. Identifies the economic events relevant to a business. Ex: sales numbers, services offered, payment of wages, etc. After identifying : records those numbers, creating a history for all financial activities, systematic, chronological record of events. After recording : communicates information that was collected to interested users by accounting reports, most common type of report: financial statements. Companies make meaningful financial statements by accumulating data over time (in the. Aggregate), makes it more simplified and easier to understand. It is important to be able to analyze and interpret the given information. Internal users: the managers who plan, organize, and run businesses. Managerial accounting: provides internal reports to help users make decisions about the company. External users: individuals outside of the business who want financial info about a company.