ACCT 1510 Study Guide - Final Guide: Deferral, Gross Profit, Dividend Yield
18 Apr 2018
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Document Summary
Internally: make business decisions, control the company & evaluate the. Accounting: the process of identifying, measuring, recording and communicating financial information about companies" business activities so that decision makers can make informed decisions. An information system that communicates business activities effectiveness of the past. Externally: investors evaluate prospects of the company, creditors determine how much they should lend and governments determine taxes. Financial accounting: provides decision makers with info that assists them in assessing the amounts, timing and uncertainties of a company"s cash flow without incurring expenses. Business activities -> financing (obtaining funds needed to begin business), Investing(the purchase and sale of assets) and operating activities (the things the business does to generate revenue) Revenue is the increase in assets resulting from sales. Assets: economic resources that the company can convert to cash. Transactions are summarized and reported in these standardized reports which assist users.
