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Almost everyone at some point will use or come in contact with some form of financial "report" or financial statement.
To take a look at the personal aspect of it, open a bank statement, a bill of some sort, look at your tax form, these are all forms of financial reports.
Looking on the business end of it many people use financial reports to determine the standing of a company, whether a small mom and pop business or a large corporation, financial reports are very important to the life of a business. Looking at the financial reports of a business can help determine how good (or bad) a business is doing. Investors, whether banks, private, or even stockholders, can determine if a business is worth the risk of investing into.
Small business owners, managers and even CEO's of large Corporations use financial statements to determine where their business stands and how to proceed in the years to come. Can they afford to hire new employee's or do they need to cut back? Can they expand their business, how much can they spend on supplies, etc. They also use financial statements to for Tax Purposes.
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Identify typical users of financial reports and their interests or needs?
The users of financial reports include present and potential investors, employees, lenders, suppliers and other trade creditors, customers, governments and their agencies and the public.
Why auditor's reports are important to users of financial statement?
to control the finance activitiies
What is the primary objective of financial accounting?
its primary objective is to provide external reports called financial statements to help users analyze an organization's activities.
What is the first reason behind the GASB's establishment of standards?
(1) result in useful information for users of financial reports.
What are the distinguishing features of managerial accounting?
How would you describe the difference between financial and managerial accounting? First, the primary users of reports in financial accounting is external users: stockholders, creditors, and regulators. The primary users of managerial accounting is internal users: officers and managers. Second, the types and frequency of reports for financial accounting uses financial statements and they are quarterly and annually. Managerial accounting uses internal reports and as frequently as needed. Third, the purpose of reports for financial accounting is general-purpose and managerial accounting is special-purpose for specific decisions. Fourth, content of reports for financial accounting is limited to double-entry accounting and cost data, highly aggregated (condensed), pertains to business as a whole, and generally accepted accounting principles. Managerial accounting is extended beyond double-entry accounting to any relevant data, very detailed, pertains to subunits of the business, and standard is relevance to decisions. Last, financial accounting verification process is audit by CPA and managerial accounting verification process is no independent audits.
What is the difference between general purpose financial reports and special purpose financial reports?
General purpose financial reports are a common set of reports issued by most companies. Special purpose financial reports are specific reports related to individual events.
What is the second reason behind the GASB's establishment of standards?
(2) guide and educate the public, including issuers, auditors, and users of those financial reports.
What is the Financial reports of San Miguel corporation?
What is the Financial reports of San Miguel corporation?
Why general purpose financial statements cannot be focused on all users of financial statements?
in general, financial reports cannot focus on servicing a single group of users. There is the so-called conflict of interest between the user groups, such as suppliers and lenders vs shareholders.Suppliers and lenders require conservative approach in the reports which will reduce thhe shareholdes forecasts of profitability.Senior management vs Employess. Senior management worries that large profit will increase the wage demand, so they ensure that reports show only a small percentage of the total income.
What level of knowledge should users of financial statements have?
What level of knowledge should users of financial statements have?
Which companies release financial reports?
All companies listed on the stock exchange are required to release annual financial reports to the public. All major companies such as Microsoft, Sony and Apple release financial reports.
What are financial reports that summarize the financial condition and operations of a business?
Financial statements are financial reports which summarize the financial condition and operations of a business. Included in a financial statement are a balance sheet, income statement, and also a cash flow statement.
