Summary
Summary Accounting literature notes 22/23
- Course
- Institution
- Book
Accounting literature notes 22/23; Gee
[Show more]
Connected book
Book Title:
Author(s):
- Edition:
- ISBN:
- Edition:
Seller
Follow
femkelooman
Reviews received
Content preview
Accounting literatuur aantekeningenHoofdstuk 1 – introducing financial accounting:
Accounting: the process of recording, summarising, and analysing financial transactions.
2 categories:
- Financial accounting – decision makers outside of the company (information about
company profitability and financial health)
- Managerial accounting – decision makers within the company (includes proprietary
information about the profitability of specific product, divisions, or customers)
Who uses financial accounting information?
- Shareholders and potential shareholders
Corporation: form of business organization that is characterized by a large
numer of owners who are not involved in managing the day-to-day operations
of the company. – legal entity that issues shares to its owners in exchange for
cash.
Sole proprietorship: single owner who manages the daily operations (f.e.
small family businesses).
Partnership: 2 or more owners involved in managing the business (f.e.
lawyers/accountants).
→ financial statements provide information on the risk and return associated
with owning shares in the corporation and reveal how well management has
performed.
→ f.s. also provide insights into future performance by revealing
management’s plans for new products, procedures, and strategic directions.
- Creditors and suppliers
Creditors: banks or other lenders; use financial accounting information to help
determine loan terms, loan amounts, interest rates, and collateral.
Suppliers: use financial information to establish credit sales terms and to
determine their long- term commitment to supply-chain relationships.
- Managers and directors
Board of directors: elected to represent shareholder interest and oversee
management.
Directors use financial accounting information to review the results of
operations, evaluate stragety, and asses management performance.
, - Financial analysts
Analysis helps identify and asses risk, forcast performance, establish prices for
new issues of shares, and make buy of sell recommendations to investors.
- Other users: prospective employees, labour unions, customers, tax agencies and
government agencies.
Investing = creditor financing + owner financing
Assets = liabilities + equity
Income = revenues - expenses
Return on equity (ROE):
Debt-to-Equity Ratio (D/E):
Balance sheet:
Income statement:
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 femkelooman. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.13. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now