Financial Planning Mark Schnoor, MBA January 24, 2008 LEAD Accounting Core Competency Decision Making Accounting is a system that measures, processes, and communicates financial information…it is not your business
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Mark Schnoor, MBA
January 24, 2008
Accounting is a system that measures, processes, and communicates financial information…it is not your business
All organizations engage in 3 primary accounting activities: financing, operating, and investing
IMSA is a non-profit organization
Business transactions are economic events that affect the financial position of a business entity. To measure a business transaction, the accountant must decide when the transaction occurred, what value to place on the transaction, and the components of the transaction should be categorized
Consider buying an office desk...
When do you recognize the purchase?
1. An employee sends a requisition to the purchasing department
2. The purchasing department sends a purchase order to the supplier
3. The supplier ships the desk
4. The company receives the desk
5. The company receives the bill
6. The company pays the bill
Consider buying a building…