Intermediate Accounting Chapter 1 - Exam 1 with Complete Solutions | Already Passed

Intermediate Accounting Chapter 1 - Exam 1 with Complete Solutions | Already Passed The balance sheet, the income statement, the statement of cash flows, and the statement of owners' or stockholders' equity. - What are the four main financial statements? Accounting provides relevant, reliable, and timely information to managers, investors, and creditors to allow resource allocation to the most efficient enterprises. Accounting also provides measurements of efficiency and financial soundness. - How does accounting assist in the efficient use of scarce resources? Financial, managerial, tax, audit, accounting information systems. - What are the main areas of accounting? Investors and Creditors. - Who are the primary users of financial statements? Financial accounting is the process that prepares a firm's financial reports for use by both internal and external parties and managerial accounting is the process of identifying, measuring, analyzing, and communicating financial info needed by management. - What is the difference between financial accounting and managerial accounting? Stockholder's/Investors and creditors. Others include government agencies, employees, consumers, financial intermediaries, suppliers, labor unions, and auditors. - Who are the external user groups that use financial accounting statements?