FOA - QUIZS

Independent parties can confirm data accuracy

• Verifiability

• Reliability

• Confidentiality

• Integrity

Enhance user interpretation and benchmarking

• UNDERSTANDABILITY AND COMPARABILITY

• SIMPLE AND EFFECTIVE

• COMPLEXITY AND DISTORTION

• ACCURACY AND RELIABILITY

What drives the need for forecasting and strategic planning in business?

• Market Trends

• Risk and Uncertainty

• Customer Preferences

• Technological Advancements

→ Financial statements must be unbiased

• Neutrality

• Subjectivity

• Bias

• Partiality

Detects errors before adjustments

• Trial Balance

• Income Statement

• Balance Sheet

• Cash Flow Statement

→ Serves external users (not internal only)

• Public Accounting

• Private Accounting

• Forensic Accounting

• Management Accounting

What is a Corporation?

• A business form regulated by the SEC.

• A type of partnership between individuals.

• A non-profit organization focused on charity.

• A government entity managing public resources.

Accounting Cycle

• Begins with Identifying Transactions

• Starts with Financial Statements

• Includes only Posting

• Ends with Closing Entries

What are the three types of business?

• Service, Merchandising, Manufacturing

• Retail, Wholesale, E-commerce

• Consulting, Freelancing, Contracting

• Production, Distribution, Marketing

Who are Internal Users of accounting information?

• Shareholders and investors

• Managers and employees

• External auditors

• Government regulators