Chapter 5 6 7 8 study guide

Chapter 5 6 7 8 study guide - Chapter 5 study guide ,.When...

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Chapter 5 study guide When accounting information is used to oversee the business, it is being used in a  governance  role. When  accounting information is used to administer contracts including debt covenants, it is being used in a  contracting  role. When accounting information is used to assess stock prices, it is being used in a  valuation  role. Both GAAP and IFRS use accrual accounting. IFRS reports assets and liabilities in the opposite order as  GAAP. The Financial Accounting Standards Board sets GAAP while the International Accounting Standards  Board sets IFRS standards. Comparative financial statements contain two or more columns of numbers, with each column representing  the financial results for different time periods. This makes it easy for financial statement users to compare  account balances from one period to the next. The first section of a company's annual report includes information about a company's products and its  marketing tactics. The second (financial) section of the annual report includes summarized financial data,  management's discussion and analysis, management's report on internal control, the comparative financial  statements, notes, the auditor's report, recent stock price data, unaudited quarterly data, and the names of  directors and officers. Ace Co. sold stock to new shareholders for cash. As a result of this transaction
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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.

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Chapter 5 6 7 8 study guide - Chapter 5 study guide ,.When...

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