ACCT200 Lecture Notes - Lecture 1: Financial Accounting Standards Board, Video Lesson, Financial Statement
30 Mar 2016
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**video lectures taken from survey of accounting online textbook connect lectures** Accounting: an information system that reports on the economic activities and financial condition of a business or organization. Fundamental accounting equation: a = l + oe. Managerial accounting: branch of accounting that provides information useful to internal decision makers and managers in operating an organization. Financial accounting: field of accounting designed to meet the information needs of external users of business information (creditors, investors, government agencies, etc. ) **while government and non-profits do not have a profit, they still need accounting information. **dividend comes out of retained earnings but not expense. Historical cost: long term assets, if market value increases, it is subjective and cannot be audited. Market: group of people or entities organized to buy and sell resources. Profit: value added by transforming resources into products or services desired by customers. Income: added value created in transforming resources into more desirable states.
