BUS-A 100 Chapter Notes - Chapter 1: Kmart, Verizon Wireless, International Financial Reporting Standards

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

Document Summary

Accounting: the recoding of business transactions and the preparation of reports summarizing these transactions. Financial statements: the reports that are used in accounting; the basis for decisions by analysts outside the company, it is important that the statements be prepared impartially, objectively, and in accordance with established standards. Financial accounting: the records and related reports that are available to people outside of the company. Impact on the financial statements: looking at the financial statements from the top down and paying particular attention to how various transactions impact the financial statements. Financing activities: transactions that raise funds for the company to operate. Investing activities: transactions in which the company is investing in assets that it will keep in the business to use in its operations. Operating activities: all of the other transactions that a business engages in which cannot specifically be classified as financing or investing: ex.