Chapter 1 Flashcards
Is Financial Accounting bookkeeping?
No! Bookkeeping is the clerical part of accounting
What kind of industry is Financial Accounting? What do they give?
A service industry; no product, just their knowledge, expertise, data, etc…
What does Financial Accounting do?
It records and quantifies the financial activities of a company
What does Financial Accounting focus on?
On how financial transactions are recorded, summarized, classified and presented in financial statements
What does Financial Accounting provide its user?
Useful financial information
Is there a lot of math in Financial Accounting?
Not really math-intensive; really just about the language of business
Does Financial Accounting analyze financial information?
Yes!
What are Owners?
Management of a company and current/potential stockholders
What do stockholders do
XXXXXXXXXXXXXXXXXXXX
What are some examples of Creditors?
Bankers, Bondholders, Vendors, IRS
What is a Bondholder?
A Creditor of a corporation
Why is having an outside accounting firm so important?
It allows a neutral party to look at a businesses finances
