ACC 100 Chapter Notes - Chapter 2: Financial Statement, Income Statement, Double-Entry Bookkeeping System

• School: Ryerson University
• Department: Accounting
• Course: ACC 100
• Professor: Cheryl Dyson

Document Summary

Information is the end product of data processing. Once data has been categorized, analyzed, and formatted for presentation purposes it becomes information which can be used for decision making. Accounting system: an information system that collects, groups, and communicates a business"s financial position, including its financial health and profitability. Changes financial data into financial info (in the form of financial statement) Gaap stipulates the elements (categories) that all businesses activities are divided into, changing financial data into financial information and, eventually, into financial statements. Financial statements tell a business"s story, what it does and how well it does it. They provide a business"s financial performance (income statement), its current financial position (balance sheet), and its cash flows (statement of cash flows) Both internal and external stakeholders can use the financial statements to analyze a business and answer questions, which allow them to make decisions and meet their objectives.