Chapter2Risks from Financial Accounting
OVERVIEW OF ACCOUNTING
It is widely understood that financial accounting is the system that businesses use to keep records that explain what is happening in their operations. The stated goals of accounting involve identifying individual commercial transactions so that they can be used in the preparation of summarized financial statements that provide significant information about the entity. To a large degree, we accept accounting as being the language of corporations, banks, and other organizations. To an even larger degree, we need to be suspicious of accounting records that hide the risks inherent in the firm’s management, marketing, and financial activities.
An understanding of financial accounting ...
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