Lecture Details

Financial Accounting standards -Intermediate Accounting CPA exam ch 1 p 1

Intermediate Accounting by Keiso

The essential characteristics of accounting are (1) the identification, measure¬ment, and communication of financial information about (2) economic entities to (3) interested parties. Financial accounting is the process that culminates in the preparation of financial reports on the enterprise for use by both internal and external parties. Financial statements are the principal means through which a company communicates its financial information to those outside it. The financial statements most frequently provided are (1) the balance sheet, (2) the income statement, (3) the statement of cash flows, and (4) the statement of owners’ or stockholders’ equity. Other means of financial reporting include the president’s letter or supplementary schedules in the corporate annual report, prospectuses, reports filed with government agencies, news releases, management forecasts, and social or environmental impact statements