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WALL STREET PREP ACCOUNTING CRASH COURSE INTRODUCTION& THE INCOME STATEMENT EXAM WITH QUESTIONS AND WELL VERIFIED ANSWERS [GRADED A+} ACTUAL 100%$21.99
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WALL STREET PREP ACCOUNTING CRASH COURSE INTRODUCTION& THE INCOME STATEMENT EXAM WITH QUESTIONS AND WELL VERIFIED ANSWERS [GRADED A+} ACTUAL 100%
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Course
Ati pn comprehensive exit 2020
Institution
Ati Pn Comprehensive Exit 2020
WALL STREET PREP ACCOUNTING CRASH
COURSE INTRODUCTION& THE INCOME
STATEMENT EXAM WITH QUESTIONS AND
WELL VERIFIED ANSWERS [GRADED A+}
ACTUAL 100%
What is accounting?
• Accounting is the language of business. It is a standard set of rules for
measuring a firm's financial performance. A...
WALL STREET PREP;ACCOUNTING
CRASH COURSE EXAM WITH
QUESTIONS AND WELL VERIFIED
ANSWERS [GRADED A+] REAL EXAM
100%
What is Accounting?
Accounting is the language of business; it is a standard set of rules
for measuring a company's financial performance.
Assessing a company's financial performance is important for:
The firm's officers (managers and employees)
Investors
Lenders
General public
Standard financial statements serve as a "yardstick" of
communicating financial performance to the general public.
,Why is Accounting Important?
Enables managers to make corporate decisions
Enables the general public to make investment decisions
Who Uses Accounting?
Used by a variety of organizations - from the federal government to
non-profit organizations to small businesses to corporations
We will discuss accounting rules as they pertain to publicly-traded
companies
Accounting Regulations
Accounting attempts to standardize financial information and follows
rules and regulations
These rules are called Generally Accepted Accounting Principles
(GAAP)
In the US, the Securities and Exchange Commision (SEC) authorizes
the Financial Accounting Standards Board (FASB) to determine
accounting rules
GAAP comes from the Statements of Financial Accounting Standards
(SFAS) issued by the FASB
,An Overview of the SEC
A US federal agency established by the US Congress in 1934
Primary mission is "to protect investors and maintain the integrity of
the securities markets"
Division of Corporate Finance oversees FASB
An Overview of FASB
Established in 1973 as an independent body to carry out the function
of codifying accounting standards on the behalf of the SEC
Composed of seven full-time members appointed for five years by the
Financial Account Foundation (FAF)
Decisions are influenced by:
International Financial Reporting Standards (IFRS)
Over 100 countries, including the EU, UK, Canada, Australia, and
Russia, have adopted a unified set of international accounting
standards (IFRS)
Although we have seen unprecedented convergence over the last few
years between US GAAP and IFRS, some differences remain
, Assumption 1: Accounting Entity
A company is considered a separate "living" enterprise, apart from its
owners
In other words, a corporation is a "fictional" being
Assumption 2: Going Concern
A company is considered a "going concern" for the foreseeable future; it is
assumed to remain in existence indefinitely
Assumption 3: Measurement
Financial statements can only show measurable activities of a corporation
such as its quantifiable resources, its liability, amount of taxes it is facing,
etc.
Assumption 4: Periodicity
Companies are required to file annual and interim reports
In the US, quarterly and annual financial reports are required
An accounting year (fiscal year) is frequently aligned with the calendar year
Four Underlying Assumptions of Accounting
(1) Accounting Entity
(2) Going Concern
(3) Measurement
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