Join Earl Kay Stice for an in-depth discussion in this video Summary of financial reporting, part of Accounting Foundations.
Financial Accounting.…Focus on communicating to people outside the company.…Primarily lenders and investors who are…providing money to the company to buy its assets.…That's the primary audience.…You remember, financial reporting,…people outside the company.…Really, these financial reports can be thought of…as three pieces of paper.…The Balance Sheet Report,…The Income Statement Report,…and the Statement of Cash Flows Report.…It's amazing how much information can be summarized…about a company on just three pieces of paper.…
Think about Walmart and their ten billion customer…visits per year the results of all of that…can be summarized in boom, boom, boom,…three pieces of paper.…These summary reports to people outside of the company.…So let's remind ourselves, let's review.…What's on the balance sheet?…Three things, structured around our favorite equation.…It wasn't our favorite equation before today,…maybe, but it is now.…The Accounting Equation.…Assets equal liabilities plus equity.…If I've got assets, I had to get the money…
- What is accounting?
- Working with balance sheets and income statements
- Determining the costs of products
- Performing break-even analysis
- Determining average and marginal tax rates
- Understanding tax deductions and credits
Skill Level Appropriate for all
1. Basics of Accounting
2. Financial Accounting
3. Managerial Accounting
4. Income Taxes
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