accounting1
notes to the financial statement
The element of a corporation's annual report that describes the corporation's accounting methods is the
marketing managers
Trying to determine whether a marketing proposal will be cost effective.
creditors
Trying to determine whether the company can pay its obligations.
internal revenue service
Trying to determine whether the company complied with tax laws.
chief financial officer
Trying to determine whether the company should employ debt or equity financing.
investors in common stock
Trying to determine whether the company's net income will result in a stock price increase.
corporation
easier to transfer owndership, easier to raise funds, no personal liability, Easier to transfer ownership and raise funds, no personal liability.
present creditors
external
taxing authorities
external
regularatory authorities
external users
cost of goods sold
income statement
income tax expense
income statement
interest expense
income statement
net sales
income statement
management
internal
income taxes payable
liabilities
other liabilities
liabilities
accounts payable
liability
notes payable
liability
balance sheet
presents info at a specific point in time, reports assets, liabilites, and stockholder equity
partnerships and sole propierities
reduced legal liability for investors
investing section
section of a cash flow statement indicates the cash spent on new equipment during the past accounting period
partnership
simple to estable, shared control, croader skills and resources, tax advantages, Shared control, tax advantages, increased skills and resources.
sole proprietorship
simple to establish, owner controlled, tax advantages, Simple to set up and maintains control with founder
common stock
stockholders equity
retained earnings
stockholders equity
SOX 2002
top management must certify accuracy of financial information, severe penalites for fraud, increased the independence of outside auditors, increased oversight rold of BOD
accoutns receivable
asset
cash
asset
inventories
assets
other assets
assets
property, plant, equipment
assets
basic accounting equation
assets=liabilities + stock holders equity
inventories
balance sheet
accounts payable
balance sheets
common stock
balance sheets
property, plant, equipment
balance sheets
receivables
balance sheets
retained earnings
balance sheets