Business in Action : Chapter 17

accounting equation serves as the framework for the entire accounting process:

Assets = Liabilities + Owners's Equity

management accounting

The area of accounting concerned with preparing data for use by managers within the organization.

net income

a profit earned or loss incurred by a firm, determined by subtracting expenses from revenues.

balance sheet

a statement of a firm's financial position on a particular date. Used to see what their current assets and liabilities are. Helps the managers in the company to assess financial health of the company during a given period

The balance sheet contains information on assets, liabilities, and owners' equity, which according the to the capter are all key components of _________

accounting equation

Pop uses what the chapter call a_________ to provide a snapshot of the company's financial position

balance sheet

Pops uses _______ to identify, measure, and communicate financial information to others outside the organization, as discussed in the chapter

financial accounting

As described in the video, Pops uses what the chapters define as ________ to provide managers with sales and inventory information

management accounting

Pops uses ________ to help determine whether the company is operating at a profit, which the chapter discusses as a key indicator of a company's overall health

net income

financial accounting

the area of accounting concerned with preparing financial information for users outside the organization.