Investing and Financing Decisions and the Accounting System
What Business Activities Cause Changes in Financial Statement
Nature of Business Transactions
a. Transactions are events recorded as part of the accounting process
Chapter 1 Financial Statements and Business Decisions
Understanding the Business
The accounting system
a. Financial accounting reports
i. External decision makers
b. Managerial accounting reports
i. Internal decision makers
Adjustments Financial Statements, and the Quality of Earnings
Adjusting Revenues and Expenses
a. During accounting period, transactions resulting in exchanges
between the co and external parties are analyzed and reco
Operating Decisions and the Accounting System
How Do Business Activities Affect the Income Statement?
The Operating Cycle
a. Long term objective for any business is to turn cash into more cash
b. Excess cash must be generate from operatio
Presented below are the comparative balance sheets of Big Apple, Inc., at December 31, 2014, and 2013. Sales for the
year ended December 31, 2014, totaled $890,000.
A) Calculate ROI for 201
Prepare a bank reconciliation for Show Me, Inc., as of June 30 from the following information:
(a.) The June 30 balance shown on the bank statement is $2,898.
(b.) Outstanding checks at June 30 totaled $165.
(c.) A deposit