[ADM2342] - Midterm Exam Guide - Ultimate 43 pages long Study Guide!

314 views43 pages

Document Summary

Accounting is defined by three essential characteristics: the identification, measurement, and communication of financial information, economic entities, interest persons. Accounting has two broad classifications: financial accounting (financial reporting) Preparation of financial reports about business activities. Used by bother internal and external users: managerial accounting. Identifying, measuring, analyzing, and communicating financial information to internal decision-makers. Financial statements are the principal way of communicating financial information to those who are outside an enterprise. Major financial statements include: statement of financial position, statement of income/comprehensive income. Includes other comprehensive income (oci: statement of cash flows, statement of changes in equity. Financial reporting aids users in the allocation of scarce resources (capital) The accounting profession has the responsibility of measuring a company"s performance accurately, fairly, and on a timely basis. These measurements enable investors and creditors to compare the income and assets employed by companies. Investors can then assess the relative risks and returns associated with companies.

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers

Related Documents

Related Questions