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2. Who are the users of accounting information?
The users of accounting information are called stakeholders. Stakeholders include resources providers, financial analyst, broker attorneys, government regulators, news reporters. 3. What body establishes accounting rules in the U.S.? What are the rules called?
The bodies that establish the accounting roles are the financial accounting standards board FASB. The rules are called the generally accepted accounting principles GAAP 4. What is the accounting equation?
Assets= liability+ stock holders equity 5. What are assets, liabilities and owners’ equity? Give examples.
Assets- are economic resources used by a business to produce revenue.
Liabilities- obligations for a business to religious assets, provide services or accept obligation.
Stock holders equity- represents the portion of assets that is owned by stockholders
Assets= land + cash
Liabilities- NA
Stock holders equity- common stock and retained earnings 6. What does double entry bookkeeping system mean?
Double entry bookkeeping system means all transactions affect the accounting equation in at least two places. 7. Who are the residual owners of a business? stock holders 8. What are dividends?
Are when a business transfers some or all of its earning to owner. 9. List the 4 financial statements. What does each statement tell you about a company?
Income statement- matches revenue with the expenses and tells the net income or net losses.
Statement of change in stockholders equity- reports changes in common stocks. Changes in retained earnings.
Balance Sheet- total assets balance sheet equal
Statement of cash flows- explains how a company obtained and cash during the accounting period. 10. What is the horizontal financial statement model?
Shows a set of financial statements across a single page or paper 11. What is the difference between financial and managerial accounting?
Difference between managerial and
The users of accounting information are called stakeholders. Stakeholders include resources providers, financial analyst, broker attorneys, government regulators, news reporters. 3. What body establishes accounting rules in the U.S.? What are the rules called?
The bodies that establish the accounting roles are the financial accounting standards board FASB. The rules are called the generally accepted accounting principles GAAP 4. What is the accounting equation?
Assets= liability+ stock holders equity 5. What are assets, liabilities and owners’ equity? Give examples.
Assets- are economic resources used by a business to produce revenue.
Liabilities- obligations for a business to religious assets, provide services or accept obligation.
Stock holders equity- represents the portion of assets that is owned by stockholders
Assets= land + cash
Liabilities- NA
Stock holders equity- common stock and retained earnings 6. What does double entry bookkeeping system mean?
Double entry bookkeeping system means all transactions affect the accounting equation in at least two places. 7. Who are the residual owners of a business? stock holders 8. What are dividends?
Are when a business transfers some or all of its earning to owner. 9. List the 4 financial statements. What does each statement tell you about a company?
Income statement- matches revenue with the expenses and tells the net income or net losses.
Statement of change in stockholders equity- reports changes in common stocks. Changes in retained earnings.
Balance Sheet- total assets balance sheet equal
Statement of cash flows- explains how a company obtained and cash during the accounting period. 10. What is the horizontal financial statement model?
Shows a set of financial statements across a single page or paper 11. What is the difference between financial and managerial accounting?
Difference between managerial and