Chapter 1 Homework - Rachel L Gates ACC-240 Homework Assignment Chapter 1 Questions 3 Briefly distinguish financial accounting from managerial

Info iconThis 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!
Background image of page 1

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

View Full DocumentRight 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. First, Identify
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/01/2011 for the course ACC 240 taught by Professor Lewis during the Fall '08 term at Eastern Michigan University.

Page1 / 12

Chapter 1 Homework - Rachel L Gates ACC-240 Homework Assignment Chapter 1 Questions 3 Briefly distinguish financial accounting from managerial

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online