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Why do most companies adhere to GAAP for their basic internal financial statements?
Accural accounting provides a uniform method to measure an organization's financial performance.
Why is it necessary to develop a definitional framework for the basic elements of accounting?
. According to the FASB conceptual framework, the objective of financial reporting for business enterprises is based on the needs of the users of financial statements. Explain the level of sophistication that the Board assumes about the users of financial statements
What are the four basic financial statements?
The four major financial statements are:Income statementBalance sheetStatement of owner's equityCash-flow statement
The basic objective of financial accounting is?
The basic objective of financial accounting is the formulation of financial statements including the balance sheet, income statement and cash flow statement. Income statements show the company's operating performance quarterly or annually.
What are the functions of an accounting department?
They maintain the general ledger which is all the financial transactions of the business. They usually are responsible for paying bills and collecting cash from customers. They also prepare the company's financial statements. Depending on how complex the organization is, they may have a number of other responsibilities like handling taxes, but those are the standard, basic ones. It's a very important (even if not exciting) function for a business.
Who are the basic users of financial statements?
Wiz Khalifa, Donald Trump and Bear Grylls
What is considred to be a personal finance statement?
A financial statement (or financial report) is a formal record of the financial activities of a business, person, or other entity. In British English-including United Kingdom company law-a financial statement is often referred to as an account, although the term financial statement is also used, particularly by accountants. For a business enterprise, all the relevant financial information, presented in a structured manner and in a form easy to understand, are called the financial statements. They typically include four basic financial statements, accompanied by a management discussion and analysis.
What is a Stable Dollar Concept?
Historical costs are not adjusted in the basic financial statements to reflect changes in the unit of measure, the dollar. Supplemental financial statements are permitted to show adjustments for inflation
Define the purpose of accounting and identify the four basic financial statements?
The purpose of accounting is provide information to the users like investors ,financial institutions and to other clients. The four basic financial statements are balance sheet,income statement,cash flow,statement of retained earning.
Why is a regulatory framework necessary?
Regulatory framework is necessary for the preparation of Financial statements. - Financial statements are used by investors, lenders and customers (to name but few) and must be helpful for those stakeholders for making decisions. - Statements should be comparable and provide basic information.
In what cases is a financial audit necessary?
If the company is publicly owned and must submit financial statements to the Securities and Exchange Commission (SEC), an annual financial audit is a basic requirement
What are the four financial statements explain their basic content and why it is important that the statements are prepared?
balance sheet,income statement,cash flow statement,retained earnings
