Intermediate Accounting Exam 1 Review with Complete Solutions | Graded A+

Intermediate Accounting Exam 1 Review with Complete Solutions | Graded A+ Essential characteristics of accounting - the identification, measurement, and communication of financial information about economic entities to interested parties Financial accounting - prep financial reports on entity for internal and external parties Managerial accounting - identify, measure, analyze financial info needed by management to plan, control, and evaluate comp operations What are examples of financial reporting other than financial statements, why are they used - Presidents letters, reports to gov agencies, news release, prospectuses. Used because of authoritative pronouncement, regulatory rule, or mgmt wants to What determines if business thrives - Efficient use of limited resources What does capital allocation promote - Productivity, innovation, efficient and liquid mkt for buying and selling securities and obtaining and granting credit Objective of general purpose financial reporting - provide financial info about entity useful to equity investors, lenders, and creditors General purpose financial statements - Most useful info at least possible cost