Accounting 1 Questions and Graded Answers.
what two concerns of investors and creditors are summarized by the term "cash flow prospects?"
- return of investment and return on investment
three financial statements used to communicate financial accounting info to interested external
parties - balance sheet (statement of finical position), income statement, and statement of
cash flow
accounting system: - the personnel, procedures, devices and records used by an entity to
develop accounting info and communicate this information to decision makers
External users of accounting information - are individuals and other enterprises that have
a current or potential financial interest in the reporting enterprise, but that are not involved in the
day-to-day operations of that enterprise. External users of financial information may include the
following: owners, creditors, potential investors, labor unions, governmental agencies, suppliers,
customers, trade associations, and the general public.
There are three basic financial statements that we will study in this course. - these three
include the balance sheet, income statement, and statement of cash flows.
balance sheet - the balance sheet is often referred to as the statement of financial position
because it shows the resources of a business and the claims against those resources.
The income statement - is often referred to as the statement of operations.
This financial statement - measures the revenues earned by a company during a period of
time and the expenses incurred to generate those revenues.
what two concerns of investors and creditors are summarized by the term "cash flow prospects?"
- return of investment and return on investment
three financial statements used to communicate financial accounting info to interested external
parties - balance sheet (statement of finical position), income statement, and statement of
cash flow
accounting system: - the personnel, procedures, devices and records used by an entity to
develop accounting info and communicate this information to decision makers
External users of accounting information - are individuals and other enterprises that have
a current or potential financial interest in the reporting enterprise, but that are not involved in the
day-to-day operations of that enterprise. External users of financial information may include the
following: owners, creditors, potential investors, labor unions, governmental agencies, suppliers,
customers, trade associations, and the general public.
There are three basic financial statements that we will study in this course. - these three
include the balance sheet, income statement, and statement of cash flows.
balance sheet - the balance sheet is often referred to as the statement of financial position
because it shows the resources of a business and the claims against those resources.
The income statement - is often referred to as the statement of operations.
This financial statement - measures the revenues earned by a company during a period of
time and the expenses incurred to generate those revenues.
