1/ 29Wall Street Prep Accounting Crash Course Exam1.What is Accounting?:Accounting is the language of business; it is astandard 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)InvestorsLendersGeneral publicStandard financial statements serve as a "yardstick" of communicatingfinancial performance to the general public.2.Why is Accounting Important?:Enables managers to make corporatedeci- sionsEnables the general public to make investment decisions3.Who Uses Accounting?:Used by a variety of organizations - frogovernment to non-profit organizations to small businesses tocorpor We will discuss accounting rules as they pertain to publicly-traded c4.Accounting Regulations:Accounting attempts to standardize financialinforma- tion and follows rules and regulationsThese rules are called Generally Accepted Accounting Principles (GAAP)In the US, the Securities and Exchange Commision (SEC) authorizes the FinancialAccounting Standards Board (FASB) to determine accounting rulesm thefederalationsompaniesPreview Mode
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