FINANCIAL INFORMATION
This characteristic means financial information should be easy for everyone to understand.
Answer: What is understandable?
This is the process of keeping accurate financial records
What is accounting?
This financial statement shows profit or loss over a period.
What is the income statement?
This type of decision involves choosing projects and how to finance them.
What are capital investment decisions?
This term describes the money a business owes to others, like loans or bills to pay.
What are liabilities?
Financial information must be accurate, complete, neutral, and follow these accepted rules.
What are accounting standards?
External users like investors rely on this type of information
What is financial accounting?
This statement tracks cash inflows and outflows.
What is a cash flow statement?
Managing short-term assets and liabilities is called this.
What is working capital management?
This term refers to items of value owned by a company, such as cash, inventory, or equipment.
What are assets?
This term means financial information should be timely and useful for decision making.
What is relevant?
this type is accounting is used to control daily operations
What is managerial accounting?
This financial statement reveals what a company owns, owes, and the owner’s stake at a specific moment.
What is the balance sheet?
Reliable financial information must be neutral, accurate, and this.
What is complete?
This is the money a business earns after paying all its costs.
What is profit?
To compare financial information with past records, information must be this?
What is comparable?
The accounting cycle begins with analyzing transactions and ends with this process
What is closing the books?
This accounting method records transactions only when cash is actually received or paid.
What is cash accounting?
These short-term accounts represent money coming into and going out of a business, like accounts receivable and accounts payable.
What are cash flow accounts?
This is the process of checking and recording financial information carefully.
What is auditing?
These short-term accounts represent money flowing into the business and money that must be paid out soon to keep operations running smoothly.
What is accounts receivable and payable?
The two common accounting methods are cash accounting and this type, which records transactions when they occur.
What is accrual accounting?
This statement provides a snapshot of assets, liabilities, and owner’s equity at a specific time.
What is the balance sheet?
This statement summarizes a company’s revenues and expenses to show net profit or loss over a period.
What is the income statement?
This is the person or group that owns a business and invests money into it.
Who is a shareholder or owner?