BUS 214 Chapter Notes - Chapter 1: Market Liquidity, Accounting Equation, United States Treasury Security
Document Summary
Financial statements are the business documents that companies use to report the. Includes income statement, statement of retained earnings, balance sheet and results of their activities to various user groups statement of cash flows. Lo 1: explain why accounting is the language of business processes data into reports and communicates results to decision makers. Accounting is an information system that measures business activities, The process by which a company"s financial statements (measure of. Who uses accounting information? performance) are prepared is called the accounting cycle. Investors(finance projects for future net income) and creditors(pay) Regulatory bodies (ie irs, sec, various state and gvt businesses, etc) Financial accounting provides information for decision makers outside the entity, such as investors, creditors, gvt agencies, and the public. Management accounting provides information for managers of a single company (ie budgets, forecasts, projections) A business takes one of the following forms. A proprietorship has a single owner (proprietor)
