Accounting chapter 1 (2)

want to make good decisions related to buying and selling their shares of the company's stock; buy ownership in the company and have the right to share in the company's profits

make decisions related to lending money to the company

Measurement of business activities of a company and communication of those measurements to external parties for decision-making purposes.

Accounting information that is provided for internal users (managers)

An entity that is legally separate from its owners.

revents stockholders from being held personally responsible for the financial obligations of the corporation.

A business owned by one person.

Business owned by two or more persons.

A financial statement that reports the company's revenues and expenses over an interval of time.

A financial statement that summarizes the changes in stockholders' equity over an interval of time. (Common Stock + Retained Earnings)

Represents all net income, less all dividends, since the company began.

A financial statement that presents the financial position of the company on a particular date. (Assets = Liabilities + Stockholders' Equity)

A financial statement that measures activities involving cash receipts and cash payments over a period of time.