{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Chapter 1 Homework - Rachel L Gates ACC-240 Homework...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Rachel L. Gates ACC-240 Homework Assignment Chapter 1 Questions 3.) Briefly distinguish financial accounting from managerial accounting. Financial accounting reports are prepared periodically to provide information to people who aren’t employed by the business. Creditors and investors are the two primary external users of this form of accounting. Managerial accounting reports are detailed financial plans that are continually updated showing the operating performance of the company. These reports are made available only to the business’s employees so that they can make business decisions related to production, marketing, HR, and finance. 4.) The accounting process generates financial reports for both internal and external users. Describe some of the specific groups of internal and external users. Internal users: Managers, Supervisors, Employees, Human resources External users: Creditors, Banks, Suppliers, Investors, Stockholders, certain customers, Local, Federal, and State Government 8.) What are the purposes of (a) the balance sheet, (b) the income statement, (c) the statement of retained earnings, (d) the statement of cash flows? (a) Balance Sheet : the purpose of this report is to show a statement of financial position (a snapshot) of the business’s assets, liabilities, and stockholders’ equity. The balance sheet ~ Balances!
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
(b) Income Statement : the purpose of this is to report the amount of revenue’s less expenses for a period of time. (c) Statement of Retained Earnings : the purpose of this is to report how Net Income and the distribution of dividends affects the financial position of the company during the period. (d) Statement of Cash Flows : the purpose of this is to summarize how a business’s operating expenses, investing and financing activities caused the cash balance to change over time. 17.) Briefly describe what an ethical dilemma is and describe the steps to consider when evaluating ethical dilemmas. An ethical dilemma is a situation that will often involve an apparent conflict between moral imperatives, in which to obey one would result in transgressing another. There is a three step process in which helps in making the better choice.
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern