Question

Exercises 01-3 EXERCISE 1.3 What is Financial Reporting? c. Henry James, a real estate investor considering building apartments in the Seattle area. d. Boeing's management. e. International Association of Machinists and Aerospace Workers, a labor union represent- ing many Boeing employees. A major focus of this course is the process of financial reporting. a. What is meant by the term financial reporting? b. What are the principal accounting reports involved in the financial reporting process? In general terms, what is the purpose of these reports? c. Do all business entities engage in financial reporting? Explain. d. How does society benefit from the financial reporting process? 01-5 XERCISE 1.4 enerally Accepted ccounting Principles Generally accepted accounting principles play an important role in financial reporting a. What is meant by the phrase generally accepted accounting principles? b. What are the major sources of these principles? c. Is there a single comprehensive list of generally accepted accounting principles? Explain. d. What types of accounting reports are prepared in conformity with generally accepted account ing principles? Describe the roles of the following organizations in establishing generally accepted accounting principles: a. FASB b. AICPA c. SEC From which of these organizations can you most easily obtain financial information about public owned companies? in security issued by a large company. The secu- XERCISE 1.5 ccounting Organizations
need exercise 3 answered A-D

Answer 1

Exercise 1.3

Answers:

a. The term financial reporting is used to file the enterprise historical transactions to predict future growth and helps manage cash flow through evidences which can effect investors and creditors decision making.

b. The principle Accounting reports involved in the financial reporting process are statement of financial position ( balance sheet), Income statements and statements of cashflows. The purpose Balance sheets is to show where the company stands in financial terms at a specific data. The Income statements is an activity statements that shows details and results of the company's profit- related activities for period of time. The statement of Cashflow is an activity statement that shows the details of the company's activities involving cash during a period of time.

c. No, only the corporation's that have investors and need to communicate business practices back to the public required to engage this in financial reporting.

d. The Financial reporting process improves the quality of decision making by external users. The external users will be able to use the process to make investment decisions, monitor the company's growth and/or loss.