ACCT 104A Lecture Notes - International Accounting Standards Board, Financial Accounting Standards Board, Healthsouth

• School: Pasadena City College
• Department: Accounting
• Course: ACCT 010
• Professor: Avo Yousefian

Document Summary

Accounting consists of three basic activities: identi es (select economic event (transaction)), records (classify and summarize), and communicates (prepare accounting report) -> analyze and interpret for users. Accounting is a set of concepts and techniques that are used to measure and report. +managerial accounting: internal users: marketing, management, nance, human resources. Explain the building blocks of accounting: ethics, principles, and assumptions. +recent nancial scandals include enron, worldcom, healthsouth, aig, and other companies. +regulators and lawmakers were concerned that the economy would suffer if investors lost con dence in corporate accounting. Generally accepted accounting principles: standards that are generally accepted and universally practiced. These standards indicate how to report economic events. Various users need nancial information -> nancial statements (balance sheet, income statement, statement of stockholders" equity, statement of cash flows, note. +historical cost principle (or cost principle) dictates that companies record assets at their cost.