Horngren introduction to financial accounting notes

Which financial statement will he NOT prepare?Д¦) Which of the following would be classified as external users of financial statements?ДЄ) Creditors of the organization and the Internal Revenue ServiceД«) Stockholders and the CFO of the organizationД¬) Management of the organization and the audit firmД) Management of the organization and SECД®) Stockholders and middle managers of the organizationД§) Which of the following individuals are most interested in management accounting information for Dotty Industries?ДЄ) Bankers who loan money to Dotty IndustriesД«) The IRS, who Dotty Industries pays taxes toД¬) Stockholders who buy stock in Dotty IndustriesД) Management who work for Dotty IndustriesД®) Suppliers who sell goods to Dotty IndustriesДЁ) The governmental agency that regulates the stock market and the financial reporting of firms that trade in the market is theД¬) Public Company Accounting Oversight Board.Д©) Accounting does not provide information that is useful in making decisions that have economic consequences.ДЎ0) Because officials in federal, state, and local governments are not in the business of making a profit, they do not need an understanding of accounting.ДЎ1) Financial accounting serves external decision makers, such as suppliers, banks, government agencies, and stockholders.ДЎ2) Management accounting serves internal decision makers, such as top executives and department heads.ДЎ3) Managerial accounting serves external users while financial accounting serves internal users.ДЎ4) The annual report is a document prepared by the board of directors and distributed to current and potential investors.ДЎ5) It is against SEC regulations to promote the corporation in the annual report.ДЎ6) Describe the differences between financial accounting and management accounting.ДЄnswer: Financial accounting focuses on the specific needs of decision makers external to the organization such as stockholders, suppliers, banks, and government agencies.

Introduction to Financial Accounting, 11e (Horngren)Д¬hapter 1 Accounting: The Language of BusinessДЎ) The primary purpose of financial accounting is toДЄ) supply information for external usersвЂ™ decision making.Д«) provide data for internal usersвЂ™ decision making.Д«) an integral part of financial statement information.Д¬) an appendix to the letter from corporate management.Д) at the bottom of the report of the independent auditors.Д®) explanatory information in the statement of managementвЂ™s responsibility for preparation of financial statements.Д¤) Annual reports include all, but which of the following?Д«) Footnotes that explain many elements of the financial statements in more detailД¬) The report of the independent registered public accounting firm (auditors)Д) Statements by both management and auditors on the companyвЂ™s internal controlsД®) The companyвЂ™s handbook for new employeesДҐ) The accountant at Forgum Corporation is asked to prepare the financial statements for the month of July.

Horngren introduction to financial accounting notes