Use the internet to research one for-profit, one governmental, and one not-for-profit entity. For each entity, describe the following:
A. the primary purpose of the entity
B. the types of activities that accountants would record (hint: what is the source of the entity’s funding, and what costs might the entity have?)
C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making process
Trending nowThis is a popular solution!
Chapter 1 Solutions
Principles of Accounting Volume 1
Additional Business Textbook Solutions
Principles of Management
Financial Accounting (12th Edition) (What's New in Accounting)
Cost Accounting (15th Edition)
Managerial Accounting (5th Edition)
Horngren's Accounting (11th Edition)
Managerial Accounting (4th Edition)
- Use the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following: A. the primary purpose of the entity B. the types of activities that accountants would record (hint: what is the source of the business funding, and what costs might the business have?) C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making processarrow_forwardDiscuss the basic assumptions of CVP analysis and how can we use CVP analysis in making decisions in a not-for-profit organization, as well as a for-profit organization?arrow_forwardProvide the best word/s to describe each of the statements below. In order for financial statements to be useful to the different users, it should represent the financial performance, financial position and cash flows of the reporting entity. Information in the financial statements is relevant when it influences the economic decisions of users by helping them evaluate past, present of future events relating to an entity and by confirming or correcting past evaluations they have made. Users must be able to compare the financial statements of an entity over time, so that they can identify trends in its financial position and performance. The expense incurred when trading inventory previously purchased is sold. A = O+ L According to this principle, the books of account should not reflect the personal affairs of the wealth of the owner(s) outside of the business. It assumes that the books of the business are drawn up to reflect the wealth (or equity) of the owner inside his…arrow_forward
- Financial reporting depends on the needs of external users of the information reported. Who are the users of government and nonprofit financial reports? Also, identify at least one difference between the needs of each of these user types and the needs of stockholders in business entities.arrow_forwardExamine the role of accounting theory in addressing the challenges of measuring and reporting the performance of non-profit organizations and government entities.arrow_forwardDescribe the concept of a profit center and, using a specific organization, give an example of how this might be used to achieve the strategic goals of the organization.arrow_forward
- Discuss what information would be most useful for these users of accounting information: Management Employees Investors Creditors Customers Tax authoritiesarrow_forwardUse the internet to research one manufacturing, one retail (or merchandising), and one service business. For each business, describe the following:Your answer:A. the primary purpose of the entityB. the types of activities that accountants would record (hint: what is the source of the business’ funding, and what costs might the business have?)C. the types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making processarrow_forwardAssess your organization's financial strategy's goals for financial management and the involvement of various stakeholders.arrow_forward
- The person MOST likely to use management accounting information is a: Select one: O a. banker evaluating a credit application. Ob. shareholder evaluating a stock investment. Oc assembly department supervisor. Od. governmental taxing authority.arrow_forwardExplain the following for a manufacturing, retail, or service business: The primary purpose of the entity The types of activities that accountants would record (hint: what is the source of the business’ funding, and what costs might the business have? The types of decisions that might be made in this organization and how financial and nonfinancial information might help the decision-making process?arrow_forwardIdentify the following users as either External users or Internal users. a. Chief Executive Officer (CEO) b. Service managers c. District attorney d. Shareholders e. Lenders f. FBI and IRS g. Consumer group h. Creditors i. Regulators j. Nonprofit donor k. Voters 1. Government officialsarrow_forward
- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax CollegePkg Acc Infor Systems MS VISIO CDFinanceISBN:9781133935940Author:Ulric J. GelinasPublisher:CENGAGE LPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College