accoutning work Essay

Dmackey@stamford.ct.gov
Ex 1.1- I use accounting when I go to the bank, I deposit and withdraw money, and I use it when I’m shopping and spending money. I use it when I’m selling things to see if I’m actually making a profit off of it. I use it to keep track of loans and money that is owed to people.
Ex 1.2- A. The company might be interested in them because they might donate money to the retirement fund. This would allow them to build up a lot of money over time.
B. China airlines might be interested because if they were to come together with the Boeing company they would make a lot of money, the Boeing company also might be able to manufacture more planes for them. The china company can also invest in the Boeing company.
C. Depending on the amount of jobs in the area people might need housing so he would create an area of housing where people would be able to commute to work and it would make him money.
D. they would be interested because it’s their own company, it makes them money. They would be interested in any investors or people willing to buy poar4ts of the company they would want you know about debts and withdraws because they would want to make sure there are no debts or money owed.
E. they might be interested because the workers for the company are representing them, if they don’t do good it reflects badly on the company. Also they probably make money when the people they are representing make money.

Exercise 1.3- A. A financial report is a formal record of the financial activities of a business, person, or other entity. Relevant financial information is presented in a structured manner and in a form easy to understand.
B. the principle accounting reports involved in the financial reporting process include press releases, balance sheets, income statements and statement of cash flows. The purpose of a press release is to communicate what you have been doing it helps to keep track of the money you are using.
C. not all companies use financial reports. The only ones that do are primarily large corporation that require investors and need to communicate business practices back to the public. Small businesses don’t have to report to the public, or if they don’t have investors they don’t need to.
D. because they can make investment decisions with a company and monitor growth or loss and watch how it does over time. It could help them decide whether or not to buy stock in a company or to sell it, it gives them an idea on future profit.
Exercise 1.4 A - accounting rules used to prepare and standardize the reporting of financial statements, such as balance sheets, income statements and cash flow statements, for publicly traded companies and many private companies in the United States
B. The measurement of economic activity, The time when such measurements are to be made and recorded; the disclosures surrounding this activity, and the preparation and presentation of summarized economic information in financial statements.
C. no because there are so many different methods and factors of it. GAAP are guidelines, principles, objectives, concepts etc. set by various entities, etc.
D. The main concerns associated with GAAP are disclosure and measurement principles. Disclosure principles refer to the information provided in financial statements, such as a company’s activities, the preparation of financial reports and the presentation of the information provided. Measurement principles refer to economic activity in a specific period, like the recording of gains and losses.

Exercise 1.5 A- The mission of the FASB is to establish and improve standards of financial accounting and reporting that foster financial reporting by nongovernmental entities that provides decision-useful information to investors and other users of financial reports. That mission is accomplished through a comprehensive and independent process that encourages broad participation, objectively considers all stakeholder views, and is subject to oversight

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