BA415L1A2 - assessing the information and coming to a...

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BA415 Financial Accounting Lesson #1 Assignment #2 Please complete Exercises 1-2A and 1-1B on page 17 in your textbook. Exercise 1-2A: Place the following steps of the accounting process in order and define each: Analyzing: considering how past events affect the business. Recording: record-keeping by entering the financial information into the accounting system. Classifying: grouping similar items together for clarity in record-keeping. Summarizing: assessing the events to provide an overall, simplified picture of the situation. Reporting: giving the results, which is often done in table format. Interpreting:
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Unformatted text preview: assessing the information and coming to a conclusion about it. Exercise 1-1B: Describe the kind of accounting information needed by each of these users: Owners (present and future): the current state of financial affairs and the profits (losses) of the company. Managers: the details of how the business is performing. Creditors (present and future): the company’s profit/loss status as well as debt/loss situation in order to secure debt. Government agencies: the overall financial condition of the company including their profit/loss and the status of their cash flow....
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