C213 Accounting for Decision Makers WGU

C213 Accounting for Decision Makers WGU Accounting The recording of the day-to-day financial activities of a company and the organization of that information into summary reports used to evaluate the company's financial status. The focus of financial accounting is the three primary financial statements: the balance sheet, the income statement, and the statement of cash flows. 00:5301:17 Among the users of financial accounting information are lenders, investors, company management, suppliers, customers, employees, competitors, government agencies, politicians, and the press. The practice of accounting involves adherence to duplicate the system throughout the United States. established accounting rules as well as the use of judgment. U.S. accounting rules are established by the FASB. In addition to the FASB, other important accounting-related organizations are the SEC, the AICPA, the PCAOB, the IRS, and the IASB. Three factors have combined to make right now a time of significant change in accounting. The three factors are the rapid advance in information technology, the international integration of worldwide business, and the increased scrutiny associated with the large corporate accounting scandals. True/False: Financial accounting information is not used to compute taxable income. False: Tax returns filed with the Internal Revenue Service (IRS) are prepared under a separate set of rules. The emphasis in financial accounting is on which of the following external user groups? Investors and creditors Management The primary internal group that uses accounting information. Internal reports are generally used by Management