Occurs when the principle used in the current year is
different from the one used in the preceding year.
What is change in accounting principle
200
Simple to establish
What is Sole proprietorship and partnership.
200
Marketing managers, production supervisors,
finance directors, and company officers.
What is internal users
200
Truck purchased
What is an Asset.
200
Goodwill
What is Intangible assets.
200
Includes all changes in stockholders’ equity during a period except those changes resulting from investments by stockholders and distributions to stockholders.
What is comprehensive income
300
No personal legal liability
What is Corporation
300
Taxing authorities (IRS) want to know.
Who want to know whether the company complies with the tax laws.
300
Notes payable and Amounts owed to suppliers
What is Liabilities.
300
Accumulated depreciation equipment.
What is property, plant, and equipment.
300
Is bought and held primarily for sale in the near term to generate income on short-term price differences.
What is trading security
400
Tax advantages
What is Sole proprietorship and partnership.
400
Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
What is external users
400
Amount earned from providing service.
What is Revenue.
400
Mortgage payable
What is Long-term liabilities.
400
The three basic tools in financial statement analysis
What are
1. Horizontal analysis
2. Vertical analysis
3. Ratio analysis
500
Easier to transfer ownership.
What is Corporation.
500
Is cash sufficient to pay dividends?
What price for an Apple iPod will maximize the company's
net income?
Can we afford to give General Motors employees
pay raises this year?
What are Questions Asked by Internal Users
500
Issuance of ownership shares.
What is Common stock.
500
Service revenue and Depreciation expense
What are items that would not appear on a balance sheet.
500
Measure the short-term ability of the company
to pay its maturing obligations and to meet unexpected needs for cash.