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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%$21.49
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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 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. Assessing a company's
financial performance is important for many groups, including:
• The firm's officers (managers and employees)
• Investors (current and potential shareholders) • Lenders (banks)
• General public • Standard financial statements serve as a "yardstick" of
communicating financial performance to the general public.
• For example, monthly sales released by McDonald's Corp. provide both
its managers and the general public with an opportunity to assess the
,company's financial performance across major geographic segments
(U.S., Europe, Asia Pacific, Middle East, and Africa).
Why is accounting important?
Making corporate decisions • Suppose a telecom company is looking to
acquire a regional company to boost its presence in that region. There are
several potential targets that fit the bill. How does this company determine
which of these, if any, companies would make a good acquisition
candidate?
Making investment decisions
• A mutual fund is looking to invest in several diverse technology
companies – Microsoft, Oracle, and Intel. How does this mutual fund
determine in which of these, if any, companies it should make an
investment?
• A major part of corporate and investment decisions relies on analyzing
each of the companies’ financial information in the above-mentioned
cases
.• Accounting, the standard language by which such financial information
can be assessed and compared, is fundamental to making these
decisions.
,Who uses accounting?
• Accounting is used by a variety of organizations - from the federal
government to non-profit organizations to small businesses to
corporations.
• We will be discussing accounting rules as they pertain to publicly-traded
companies.
Generally Accepted Accounting Principles (GAAP)
• In the Unites States, a governmental agency called the Securities and
Exchange Commission (SEC) authorizes the Financial Accounting
Standards Board (FASB) to determine U.S. accounting rules.
• FASB communicates these rules through the issuance of Statements of
Financial Accounting Standards (SFAS). These statements make up the
body of accounting rules known as the Generally Accepted Accounting
Principles (GAAP).
• These rules have been developed to provide guidelines for financial
accounting in order to ensure that businesses present their financial
information in a fair, consistent, and straightforward basis. Financial
statements must be prepared according to GAAP.
An overview of the SEC
• The Securities and Exchange Commission is a U.S. federal agency, which
was established by the U.S. Congress in 1934.
, • The agency's primary mission is "to protect investors and maintain the
integrity of the securities markets," which includes the establishment and
maintenance of accounting principles and regulations.
An overview of FASB
• The SEC largely relies on the input of the private sector to establish and
maintaining financial accounting and reporting standards
• The FASB was established in 1973 as an independent body to carry out
the function of codifying these standards on the behalf of the SEC.
• FASB is composed of seven full-time members appointed for five years
by the Financial Accounting Foundation (FAF), a "parent" organization.
• FASB formulates accounting standards through the issuance of
Statements of Financial Accounting Standards (SFAS). These statements
make up the body of accounting rules known as the Generally Accepted
Accounting Principles (GAAP).
• The FASB is independent, with close relations with the SEC, its decisions
are influenced by a variety of entities: Corporatio
International Financial Reporting Standards (IFRS)
While this course focuses on the US standards, over 100 countries, including
the EU, UK, Canada, Australia, Russia (see map) have adopted a unified set of
international accounting standards (IFRS).
• Many other countries like China, India, Brazil, are either actively pursuing
convergence with IFRS or have incorporated IFRS standards into their
national accounting standards.
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