Lagos Business School is the graduate business school of Pan-Atlantic University, owned by the Pan-Atlantic University Foundation (PAUF), a non-profit foundation registered in Nigeria.
Education in LBS is comprehensive, drawing on the experiences of a multinational faculty and participants. Learning is participant- centered and uses the case study methods.
Lecturers in LBS are topnotch in their areas of specialty; knowledgeable, creative, confident with a good sense of humor and passion. Professor Owolabi made Financial Accounting class an engaging one which students look forward to attending.
As leaders, managing directors, chief executive officers, accounting officers and entrepreneurs, financial accounting plays a huge role in the running of an organization.
Financial Accounting is a specific branch of accounting involving a process of recording, summarizing, and reporting myriads of transaction resulting from business operations over a period of time.
OBJECTIVES OF ACCOUNTING
Is to accurately prepare an organization’s financial account for a specific period, otherwise known as financial statements.
ADVANTAGES OF FINANCIAL ACCOUNTING
Maintenance of business records.
Preparation of financial statements.
Comparison of results.
Decision making.
Evidence in legal matters.
Provides information to related parties.
Helps in taxation matters.
Valuation of business.
KEY TERMS IN CORPORATE FINANCIAL ACCOUNTING
Statement of Financial Position (Balance Sheet) – Is the financial statement used to show organizational level as of a particular date, relevant endings such as date will be seen.
Statement of Comprehensive Income – the financial performance for the accounting period. It measures revenue, expenses and net income.
Statement of Cash Flow – this explains the reason for any change in the organization’s cash.
Statement of Shareholders Equity – this explains the changes that takes place in the owners (as opposed to the lenders’) claim on the organization.
Notes to Financial Statements – supplementary notes that are included with published financial statement of the company.
Flows – this is the earnings and expenses, that is revenue and expenses.
Levels – what a person owns at a point in time. Levels are assets, liabilities and equity.
Assets – are those things an entity owner has claims on.
Liabilities – are obligations of the entity to the outsiders.
Equity – represents obligation of the entity to the owner.
Basic accounting equation – Asset = liabilities minus owners’ equity.
METHODS OF ACCOUNTING
The two main accounting methods are cash and accrual accounting.
Cash accounting records revenue and expenses when they are received and paid.
Accrual accounts records revenue and expenses when they occur.
IMPACT OF TRANSACTIONS
Transaction posted will have an impact on five major accounts this will include:
Assets
Liability
Owners’ equity
Revenue
Expenses
IMPORTANCE FINANCIAL ACCOUNTING
Financial accounting is Important for businesses because it helps them keep of their financial transactions. In turn, they can make sound decisions on how to allocate their resources. In addition, financial accounting helps to communicate business finances to
Outside parties such as creditors and investors.
USERS OF FINANCIAL STATEMENT
The financial statements are tools used by investors, researchers, government entrepreneur. market analyst, regulatory agencies, manager and creditors to evaluate a company’s financial earnings potential.
The Future of BioPasteur