involves identifying, recording, and communicating the operational results and status of
organization (as opposed to a subunit) - Financial accounting
A financial conveys a business's financial accounting information - statement
The four most important financial statements are......1. Income statement
2. Statement of changes in equity 3. Balance sheet
4. Statement of cash flows
The requirement to provide financial accounting information is driven by the need of
to have reliable information regarding the financial status of an organization -
outsiders
The information presented in financial statements is as important to as it is to
outsiders - managers
(T/F) Financial accounting can reveal to managers an organizations performance in
comparison to past performance (i.e. benchmarking). - True
presents a consistent audited view of an organization's financial position
and is easily compared to similar organizations - Financial accounting
(T/F) Not-for-profit organizations have to prepare financial statements. Explain. - True.
Reports are in the form of a 990.
(T/F) The preparation and presentation of financial accounting data should not be
regulated - False. It should because it is important to have financial reporting that is
accurate and based on reliable data
A federal agency that has the legal authority to regulate the form and content of
financial statements - Securities and Exchange Commission (SEC)
SEC relies on the following organizations for implementation: - Financial Accounting
Standards Board (FASB)
Industry Committees of the American Institute of Certified Public Accountants (AICPA)
Principles and Practices Board of the Healthcare Financial Management Association
(HFMA)
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