Lecture Notes for ACIS 2115 - Principles of Accounting with Easterwood at Virginia Tech (VT)

Notes Information

Material Type:Study Guide
Class:ACIS 2115 - Principles of Accounting
Subject:Accounting & Information Systems
University:Virginia Polytechnic Institute And State University
Term:Fall 2008
  • Independent Verification
  • Internal Controls
  • Inexpensive
  • Perpetual System
  • Accounting Period
  • Financial Results
  • Assets Ratio
  • The Independent
  • Circumstances
  • Reconciliation
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Sample Document Text

Exam 2 Outline Chapter 5 I. Understand the Business A. The Needs of Financial Statement Users 1. Managers at all levels within a company use accounting information to run the business. 2. Directors are the members of the board of directors, who are elected by the company’s stockholders to serve as their representatives. a. Directors oversee the managers of the company, with the primary goal of ensuring that management and financial decisions aim to benefit stockholders. b. Directors will use the financial statements to evaluate whether the CEO, CFO, and other top managers have made wise decisions about the amount to invest in assets and have managed to generate sufficient sales and net income from those assets. c. When accounting information is used to oversee the business, it is being used in a governance role. 3. Creditors use accounting information in several ways. a. Suppliers, for example, use it to decide whether to enter into contracts with another company, based in part on whether the company has su...

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