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Chapter 1 Note Packet_Student.docx - ACCT 3110 Fall 2018...

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ACCT 3110 Fall 2018Chapter 1: Environment and Theoretical Structure of Financial AccountingI.The Financial Accounting Environmenta.What is financial accounting?
b.Who uses accounting information?
Recall that _____________ accounting is concerned with providing information to____________ users.1
ACCT 3110 Fall 2018Potential users of financial information include:c.How do providers convey financial information to users?Financial statements and related disclosure notes_____________ _____________ (Statement of Financial Position)_____________ _____________ (Statement of Operations)Statement of_____________ _____________Statement of_____________ _____________Statement of_____________ _____________ _____________ (or combined with the_____________ _____________)Other sources of informationNews releasesManagement forecastsProspectusesReports filed with regulatory agenciesd.Capital Markets: composite of all _____________ and _____________There are three primary forms of business organization: (1) sole proprietorship, (2) partnership,and (3) corporation.Investorsgive corporations cash in exchange for an ownership interest (shares of stock) andcreditorslend cash to corporations by making loans or purchasing bonds (publicly traded debt).Investors give corporations cash because they expect to receive more cash later in the future.Same with creditors – they expect to get more cash back in interest in the future.Investors consider the _____________, _____________, and _____________ of future cashreceipts and disbursements when making investment decisions.e.Cash versus Accrual Accounting

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Term
Fall
Professor
Pizza
Tags
Generally Accepted Accounting Principles, International Financial Reporting Standards, Financial Accounting Standards Board, Development of Financial Accounting and Reporting Standards

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