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Unformatted text preview: 2. External reporting (financial accounting) ex. SEC, regulate stock exchange, IRS, taxes. They all follow individual rules/laws p.9 Balance sheet involves assets, liabilities, and owners equity Accounting equation Assets = liabilities + owners equity Income statement (revenue expenses) reports the amount of net income earned by a company during a period p. 12-13 FASB (Financial Accounting Standards Board) non-government agency, nonprofit that deal with profit making sector General Accepting Accounting Principal (GAAP) balance sheet, income statement, and cash flow. In order to run the business you need to look at: 1. The numbers of computer sold during a period 2. Selling price + cost of items sold s 3. Number of items purchased for sale during a period and the quantity of units remaining at the end of the period 4. Employee wages + benefits 5. Unions costs...
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