BUS 214- Midterm Exam Guide - Comprehensive Notes for the exam ( 43 pages long!)
Document Summary
Financial statements: business documents that companies use to report the results of their activities to various user groups. Statement of retained earnings (usually included in statement of sto(cid:272)kholde(cid:396)s" e(cid:395)uity(cid:895) Balance sheet (aka statement of financial position) It measures business activities, processes data into reports, and communicates results to decision makers. A(cid:272)(cid:272)ou(cid:374)ti(cid:374)g (cid:272)y(cid:272)le: p(cid:396)o(cid:272)ess (cid:271)y whi(cid:272)h a (cid:272)o(cid:373)pa(cid:374)y"s fi(cid:374)a(cid:374)(cid:272)ial statements are prepared. Individuals: manage their personal bank accounts, make personal decisions, and budget the monthly income and expenditures of their businesses. Investors and creditors: how much income they can expect to earn on an investment. Regulatory bodies: business, individuals, and other types of organizations to pay income, property, excise, and other taxes. Nonprofit organizations: base many of their operating decisions on accounting data. Financial accounting: provides information for decision makers outside the entity, such as investors, creditors, government agencies, and the public (external users) Management accounting: provides information for the managers of the business (internal users)
