Business Glossary

information developed in conformity with Generally Accepted Accounting Principles (GAAP) . It involves the recording and summarization of business transactions and events. Financial accounting relates to the preparation of financial statements for external users such as creditors, investors, and suppliers. The financial statements include the balance sheet, income statement, and statement of changes in financial position. These statements, including related footnotes, President's letter, management's discussion of operations, etc., appear in the annual report.