Explain what is meant by financial accounting and the primary users. Do you think it is...

Explain what is meant by financial accounting and the primary users. Do you think it is important to have rules for presentation of financial statements? Why or why not?

300 words

Solutions

Expert Solution

Financial accounting is the process of recording, summarizing, reporting, and analyzing the financial track of a firm through financial statements issued to exterior customers over a period of time.

The Four Principle types of financial statements are

Balance Sheet
Income Statement
Statement of Retained Earnings
Cash Flow Statement

The primary users of financial accounting are the external users, shareholders, investors , creditors, lenders and government. Share holders are using financial information to know about their investment and where to invest.

Financial accounting helps a business owner Evaluate the financial performance of his business , and also how money in the business is used. Financial accounting guide the investor and shows the information of the the company about their economic position. Every company by following same financial accounting process would be helpful to the investor what is the actual position of the company in the market

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

Distinguish between managerial and financial accounting as to primary users of reports? What types and frequency...

Distinguish between managerial and financial accounting as to primary users of reports? What types and frequency of reports, and the content and purpose of reports? how does it effect a comapny

What is the purpose of a business's financial statements? Who are the primary users of financial...

What is the purpose of a business's financial statements? Who are the primary users of financial statements?

Differentiate managerial accounting from financial accounting using the following criteria: a) Primary users of reports Type...

Differentiate managerial accounting from financial accounting using the following criteria: a) Primary users of reports Type and frequency of reports Purpose of reports Contents of reports Verification Process Give concrete examples for each difference.

In a pizza shop, what do you think the responsibilities of Financial Accounting (FI) and Management...

In a pizza shop, what do you think the responsibilities of Financial Accounting (FI) and Management Accounting (CO) are? Explain the key accounting processes as they relate to the Pizza shop?

What do you think the primary role of the government should be?

EthicsWhat do you think the primary role of the government should be?Is it just to protect your liberties from other people inhibiting your rights? The government should focus on keeping other people from interfering in your self-actualization. This is a focus on negative rights. Think the Bill of Rights which is not about what the government can do for you, it is about how the government and others should leave you alone. This is the position of the right.Is it...

Do you think the financial statements provides ALL the necessary information to external users to make...

Do you think the financial statements provides ALL the necessary information to external users to make better decision? Mention any information that should be known by external users and not included in the financial statements? Q2: From a personal perspective, why do accountants have to divide the life of the entity into periods?

Q1 :Do you think the financial statements provides ALL the necessary information to external users to...

Q1 :Do you think the financial statements provides ALL the necessary information to external users to make better decision? Mention any information that should be known by external users and not included in the financial statements? Q2: From a personal perspective, why do accountants have to divide the life of the entity into periods? answer both Questions no hand writing or pics

Distinguish between managerial and financial accounting Primary Users of Reports Types and frequency of reports (examples)...

Distinguish between managerial and financial accounting Primary Users of Reports Types and frequency of reports (examples) Purpose of Reports ( examples) What is the value chain? example

What is the primary purpose of the household, according to Aristotle. Do you think with the...

What is the primary purpose of the household, according to Aristotle. Do you think with the expansion of the market the household is shrinking as the market has expanded so much? Name one function that the household previously functioned which is now performed by the market. [ Hint: For Aristotle there are two human spheres, the sphere of production of things needed for daily lives, the household or oikos, and the sphere of politics or polis, the place for political...

What is meant by the balance of savings and investment? Do you think the government should...

What is meant by the balance of savings and investment? Do you think the government should try to balance the budget in the short-run or the long-run? Discuss what is meant by sustainability of fiscal policy.

Subjects