1. Define accounting. Who are the major users of accounting information? 2. What are the three...

1.	Define accounting. Who are the major users of accounting information?

2.	What are the three major business activities in which accountants play a major role? Give an example of each.

3.	What does the term GAAP mean? Briefly explain the roles of the Financial Accounting Standards Board and the Securities and Exchange Commission.

4.	What is double-entry bookkeeping? Give a brief example.

5.	List the four major financial statements. Which financial statements are permanent and which are temporary?

Solutions

Expert Solution

1-Accounting is a systematic process of identifying, recording, measuring, classifying, verifying, summarizing, interpreting and communicating financial information. It provides profit or loss and financial position for a given period.Two major users of accounting informations are (1) various stakeholders of the company like shareholders, banks and financial institutions.

2- three major business activities in which accountant plays important role:

(1)Financial Accounting- In financial accounting recording of various financial transactions (2) Managerial Accounting- Helps in decision making on the basis data obtained from financial accounting and(3) Auditing- to check and verify that accounting information is true and fair and tranparent.

3- GAAP (generally accepted accounting principles) is a collection of commonly-followed accounting rules and standards for financial reporting.The Securities and Exchange Commission (SEC) designated the FASB as the organization responsible for setting accounting standards for public companies in the U.S

4- Concept of Double-entry book keeping is based on the fact that every financial transaction has equal and opposite effects in two different accounts. It is used to satisfy the equation Assets = Liabilities + Equity for example if wages paid of 2000, in this transaction wages expense would be debited and cash would be credited.

5-Major financial statement- (1) Income statement - temporary (2) balance sheet - permanent (3) statement shareholders equity- permanent (4) cash flow statement - permanent

ekkarill92 answered 1 year ago

Next > < Previous

Related Solutions

1. Who are the primarily users of financial accounting vs. management accounting. 5 2. Name three...

1. Who are the primarily users of financial accounting vs. management accounting. 5 2. Name three characteristics of financial reports vs. managerial reports include in your answer 6 a- the type of report that is issued b- the report format used and who determines it c- the content of the report and who approves it 3. Explain the 3 primary functions of managerial accounting 3 Hint: the first one is planning. 4. Name and explain the three characteristics that make...

1. What is the accounting equation? 2. Who are the internal users of a company’s financial...

1. What is the accounting equation? 2. Who are the internal users of a company’s financial information? What kind of decisions do they need to make using financial information? 3. What are the four major financial statements of a corporation? 4. GAAP principles and concepts 5. What are the requirements of the Sarbanes-Oxley Act? 6. What is IASB? 7. What are assets? What are prepaid expenses? Examples? 8. What is a liability? What is an unearned revenue? Examples? 9. What...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use.' 2.Companies like Enron, HealthSouth, and Xerox Corporation have been caught in the midst of ethical lapses that led to fines, firings, and criminal and/or civil prosecution. List and briefly describe two factors that are responsible for what went wrong in these companies. 3. What is the major difference between the objective...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with...

1. Discuss internal and external users of accounting information. What areas of accounting provide them with information? Give an example of the type of report each type of user might use. 2. Explain the meaning of the business entity concept. 3. What is the major difference between the objective of financial accounting and the objective of managerial accounting?

1. What are the two major reports required of an accounting information system? 2. Why are...

1. What are the two major reports required of an accounting information system? 2. Why are they required? Discuss in 80–100 words. Thank you

Answer the following questions: 1. Briefly state what makes Accounting information useful to its users.(5) 2....

Answer the following questions: 1. Briefly state what makes Accounting information useful to its users.(5) 2. List at least five types of users of financial statements and briefly explain each user’s information expectation from the financial statements. (10)

(a) Who are internal users of accounting data? (b) How does accounting provide relevant data to these users?

(a) Who are internal users of accounting data?(b) How does accounting provide relevant data to these users?

Identify the main users of accounting information for a university.

1. Who the Users of financial statement information are and the different purposes they are used...

1. Who the Users of financial statement information are and the different purposes they are used for.

Define accounting and describe the different uses of accounting information. What are steps of the accounting...

Define accounting and describe the different uses of accounting information. What are steps of the accounting process and cycle? What are the various components of an income statement in order to evaluate a firm's "bottom line?" What do your look for on a company's balance sheet to determine its current financial position? What is ratio analysis? How can it be used to analyze financial statements to evaluate a company's performance?

Subjects