ACCT 200 1st Edition Lecture 1 Outline of Current Lecture I Types of Accounting II Stakeholders III Accounts and Financial Statements Current Lecture IV Accounting is the language of business both for internal and external users A Financial Accounting gives info to external stakeholders people not inside the business B Managerial Accounting gives info to internal stakeholders so that they can make informed decisions involving their company business help manage the company Used WITHIN the company Internal management Helps business run efficiently and effectively V Stakeholders these people care about the success or failure of a business because they are invested in it can be internal or external A External Stakeholders Capital Market stakeholders o Lenders creditors lend money want it paid back o Owners stockholders invest in business and expect a return on their investment Product Service Market stakeholders o Suppliers supply goods services to business o Customers buy from the business Government Stakeholders collect taxes this is all they care about Internal Stakeholders Business managers and employees these people are employed by the company and depend on the company to pay their salary of course they want the business to succeed VI Accounts and Financial Statements VII Income Statement Revenues earned Expenses incurred Net Income VIII Retained Earnings RE Statement retention of all prior net income Beginning RE Net Income Dividends ending Retained Earnings i Dividends are payments to those that own the company s stock 3 Balance Sheet Assets Liabilities Owner s Equity ii assets are resources owned by the business best example is cash iii liabilities are amounts OWED by a business 1 accounts payable owed to external suppliers 2 wage payable owned to workers wages iv owner s equity Capital Stock ownership of a business by people 4 Statement of Cash Flows Beginning Cash Operating Investing Financing Ending Cash ending cash here must equal the ending cash assets on Balance Sheet
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