This document contains a summary of the lecture slides and the book: Financial and Managerial Accounting by Weygandt, Kimmel & Kieso (Third Edition). This is part one: financial accounting. I also uploaded a separate part two: managerial accounting.
Full SOLUTION MANUAL FOR Financial And Managerial Accounting 4th Edition by Jerry J Weygandt, Paul D Kimmel, Jill E Mitchel A+
Test Bank for Understanding the Accounting Cycle 2nd Edition latest update
Solution Manual for Financial and managerial accounting 4th Edition Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
All for this textbook (9)
Written for
Vrije Universiteit Amsterdam (VU)
International Business Administration
Accounting (E_IBA1_ACC)
All documents for this subject (23)
Seller
Follow
florest
Reviews received
Content preview
ACCOUNTING
Financial Accounting
Summary 2020-2021
Source: Financial and Managerial Accounting by Weygandt,
Kimmel & Kieso (Third Edition)
,Accounting
Lecture 1
Accounting is information to:
- Make decisions as a firm (prices, investments, strategy)
- Make decisions as investors, as banks
- Determine tax payments
Accounting provides information to
- Make decisions
- Inform people having an interest in the firm (investors, owners, employees)
- Fulfill duties to society (pay taxes)
- Summarizes all kind of actions, decision, results, transactions into figures to steer
the business and inform stakeholders
Accounting is one language, with many dialects. IBM: net income on the basis of US
accounting principles. Fujitsu: net income on the basis of Japanese accounting principles.
What generally accepted accounting standards to use?
- US: U.S. GAAP – FASB
- Europe: IFRS – IASB
Why differences?
- What is the truth? What is the actual value of a machine you bought?
- So standard setters make a rule based on how users of accounting information get
the most relevant and reliable information.
Financial accounting: external financial reporting and bookkeeping (for stakeholders)
Management accounting: internal information for decision-making, performance evaluation
and control
1
, Financial accounting has three statements:
Each angle shows a different element of the business.
Balance sheet: overview of the firm’s situation at a point in time
- Assets: what the firm owns: what it has done with the funds it received
- Liabilities: what the firm owes: where the funds came from. Split into equity (funds
from owners) and other liabilities.
Profit and loss statement: the results of a company over a period of time
Cash flow statement: the flow of money into and out of the company over a period of time
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller florest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $4.39. You're not tied to anything after your purchase.
