Introduction, Review of Accounting Process and Financial Statements
Introduction, Review of Accounting Process and Financial Statements
Abstract
This paper explains different types of accounting phrases and how they directly affect the accounting field. Phrases which are included and defined in the paper are Generally Accepted Accounting Principles, Contra-Asset Accounts, Historical Cost, Accrual Basis vs. Cash Basis Accounting, and Accounting Standards Codification. Definitions and examples of these terms are included as well as explanations of how they are important to financial statements. The financial statements of Samsung, Lockheed Martin and RTL Group will also be examined. Their financial data will be dissected in order to understand their success and highlight their operating activities. Important facts about each organization will be displayed and details on researching information on each company’s many locations will be revealed.
Introduction, Review of Accounting Process and Financial Statements
There are many different terms that are important to the field of accounting. Some of the terms are used to understand financial statements, while others are used to define different types of financial standings and explain accounting principles. All of the terms are important to the field and offer support to investors and organizations alike in understanding financial concepts and practices. These practices are put to use and are frequently evaluated by financial specialists and the Financial Accounting Standards Board (FASB). Investopedia.com explains Generally Accepted Accounting Principles as “The common set of accounting principles, standards and procedures that companies use to compile their financial statements. They are a combination of authoritative standards and the commonly accepted ways of recording and reporting accounting information.” Essentially, they are a set of procedures and guidelines developed to ensure everyone prepares and interprets accounting reports and financial statements the
Abstract
This paper explains different types of accounting phrases and how they directly affect the accounting field. Phrases which are included and defined in the paper are Generally Accepted Accounting Principles, Contra-Asset Accounts, Historical Cost, Accrual Basis vs. Cash Basis Accounting, and Accounting Standards Codification. Definitions and examples of these terms are included as well as explanations of how they are important to financial statements. The financial statements of Samsung, Lockheed Martin and RTL Group will also be examined. Their financial data will be dissected in order to understand their success and highlight their operating activities. Important facts about each organization will be displayed and details on researching information on each company’s many locations will be revealed.
Introduction, Review of Accounting Process and Financial Statements
There are many different terms that are important to the field of accounting. Some of the terms are used to understand financial statements, while others are used to define different types of financial standings and explain accounting principles. All of the terms are important to the field and offer support to investors and organizations alike in understanding financial concepts and practices. These practices are put to use and are frequently evaluated by financial specialists and the Financial Accounting Standards Board (FASB). Investopedia.com explains Generally Accepted Accounting Principles as “The common set of accounting principles, standards and procedures that companies use to compile their financial statements. They are a combination of authoritative standards and the commonly accepted ways of recording and reporting accounting information.” Essentially, they are a set of procedures and guidelines developed to ensure everyone prepares and interprets accounting reports and financial statements the
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