Financial Accounting Chapter 1

Financial Accounting Chapter 1 - -Cost...

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Accounting Chapter 1: Classified as an investing activity on the statement of cash flows: - Purchase of land Auditors examine financial statements to express a professional, independent OPINION on the financial statements. Principles that provide significant guidance for accounting practice: - Historical cost - Realization - Matching Private sector organization that is currently responsible for setting accounting standards in the U.S.: - Financial Accounting Standards Board Two constraints in providing accounting information:
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Unformatted text preview: -Cost effectiveness-Materiality Selling stock to an investor is a-Financing activity INVESTING activities involve the buying and selling of land, buildings, and equipment used in the business Sole Proprietorship:-The owner is personally responsible for the debts of the business. Operating Activities:-Paying salaries-Providing services-Paying advertising expenses Rev>Expense:-Net income Rev<Expense:-Net loss...
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