1. Intro to Accounting
&
Fundamental
Investing

2. The Big Four

3. Four Service Lines
● Tax Services - assistance provided by CPAs for tax preparation and tax
planning.
● Consulting - When a group of business experts from a CPA firm provides a
company with advice to solve their issues.
● Audit - examines a company’s Accounting Information System to determine
whether financial reports reliably represent its operations.
● Management Advisory - CPA firm provides companies assistance in areas
such as financial planning, informational technology, and other sectors.

4. What is accounting?
● Accountancy - Is a comprehensive system for collecting, analyzing, and
communicating financial information to a firm’s owners and employees, to the
public, and to various regulatory agencies.
● Financial Accounting system is concerned with external information users:
consumer groups, unions, stockholders, suppliers, creditors, and government
agencies.
● Managerial Accounting serves internal users: sales representatives or agents.
● Certified Public Accountant (CPA) - accountant licensed by the state and
offering services to the public.

5. Case Competition
What is a Case Competition?
● A case competition involves working as a team to find an efficient solution
for a local or non-existent company.
● These scenarios may include problems such as customer loyalty,
competitor dominating sales, or marketing issues.

6. Finance
● Corporate Finance includes all that is concerned with
stockholder’s value to investment banking.
● Consists of the financial activities related to running a
corporation.

7. Investing in Stocks
● Initial Public Offering - First sale of
a company’s stock to the general
public.
● Common Stock - Most basic form
of equity ownership of a company.
● Blue Chip Stock - Common stock
issued by well-established and
respected companies with a sound
financial history and stable pattern
of dividend payouts.
● Some stocks are simply too risky

8. Return on Investments
● Price Appreciation - increase in the dollar value of an
investment.
● Total Return - Current Dividend payment + Capital Gain /
Original Investment x 100
● Dividends - payment to shareholders
● Bull & Bearish Market - terms to describe the financial
conditions of the stock market.

9. Stock Exchanges
● Organization of individuals
coordinated to provide an
institutional auction setting in
which stocks can be bought and
sold.
● NYSE
● Nasdaq
● S&P 500
● DJIA

10. Corporate Bonds
● Formal Pledge obligating the issue to pay interest periodically and repay the
principal at maturity.
● Maturity Date - Future date when repayment of a bond is due from the bond
● Face Value - amount of money that the bond buyer lent the issuer and that
lender will receive on repayment.
● Safer Investment

11. Treasury Bills
● A short-dated government security,
yielding no interest but issued at a
discount on its redemption price.
● Safest form of Investment
● Lower (ROI) Return on Investment

12. Solution to Investing
● Invest in ETF’s or low cost, Index Funds
● An exchange-traded fund (ETF) is an investment fund traded on stock
exchanges, much like stocks.
● An ETF holds assets such as stocks, commodities, or bonds, and trades
close to its net asset value over the course of the trading day
● Index Funds - is a type of mutual fund with a portfolio constructed to match
or track the components of a market index, such as the Standard & Poor's
500 Index (S&P 500).
● Diversification
● Buy and Hold
● Short Run vs Long Run Investing

13. Any Questions?