7 objectives: explain the moral hazard problem that
may exist for management of publicly traded
Moral hazard setting the stage
GAAP provides optimal forms of
presentation for many types of financial
statement items. For example there ar
Identity uses of accounting information for making
decisions about corporations:
Contracts are legal agreements for the exchange of
resources and services
Contract terms established the rights and
responsibilities of the contracting partie
Identify each of the following as describing
corporations, proprietorship and or partnerships
Distinct legal entity separate from its
More than one owner: Corporation and
Ownership by stockholders: Corporation
Explain how accounting helps investors and other
decision makers understand business.
The purpose of accounting is to help people
make decisions about economic activities.
4 basic financial statements
Income, statements of earnings consolida
Chapter 1 Financial Accounting
Compare major types of organization and explain their
An organization is a group of people who work
Distribute goods or services
Types of organization
Learning note Class Notes
A partnership can be organized as a limited liability
The LLP restricts the personal liability of each
partner for obligations created by the company.
Disadvantages of corporations
Identify business ownership structures and their
advantages and disadvantages.
A corporation is a legal entity with
The right to own, buy and sell property
The right to enter into contracts
Define GAAP explain their importance in terms of the
regulations of financial markets.
Generally Accepted accounting principles are a
set of strong accounting rules and principles that
describes the content and the manner in which
The Securities and Exchange Commission
Is a governmental agency that examines corporate
financial reports to verify their conformance with
GAAP and SEC requirements
Has a set of underlying guidelines upon which the
principles are built. They in
Identify financing activities and explain why
they are important to a business.
A business is an organization that exists for
the purpose of making a profit for its
A contributions by owners to a busines
Types of organization
United parcel services : Services Companies
Amazon .com : merchandising company
Dow Chemical Company: manufacturing
United States postal services: government and
Pepsi Co: manufacturing
By requiring all registered companies to undergo
an annual audit, users of financial reports are
The statements are prepared in accordance
The statements contain no material
List three parts/keys to your measurable plan to achieve your course goal grade!
1st I must FOCUS
2nd I must PRACTICE
3rd I must WORK HARD & then I will ACHIEVE my Anticipated Goal!
Row- horizontal group of cells ide
October 15, 2008
Accounting: AR Assignment #2
1. FedEx Corporation, which was originally called FDX Corporation, was established in
January 1998 under the control of Caliber System Inc. Under this company there are
Accounting 2102 semester review questions
Extra Credit Enter the answers in the spaces corresponding to the question numbers.
36. Which one of the following tools of analyses is NOT commonly used in cost estimation?
a. least squares regression