BUS-A 100 Chapter Notes - Chapter 1: Financial Statement, Form 10-Q, Ernst & Young

• School: IU
• Department: Business
• Course: BUS-A 100
• Professor: Vivian Winston

Document Summary

Accounting - recording of business transactions, the preparation of reports, and analyzing financial information. Financial statements - reported prepared from the accounting system. Financial accounting - records and related reports that are available to people outside of the company. Impact on the financial statements - looking at financial statements from top down and paying attention to how various transactions impact financial statements. Financing activities - transactions that raise funs for the company. Investing activities - transactions in which the company is investing in assets that will keep it in business. Operating activities - transactions not included in other two, e. g. rent salaries, and insurance expenses. Equity investors/stockholders - own a part of a company in the form of stock. Directors - represent the stockholders" interest to managements and to protect the stockholders" investment, voted by the stockholders. Board of directors - group of directors voted by the stockholders. Debt - borrowing money from investors or banks.