DE TORRES, Ginalynn Marriel A. 3LM2 ACCT100 1. Users of financial statement, briefly explain each.1 a.

Owners or investors They use financial statements as references for buying stocks, maintaining the company and/or opening up for investments. b. Management They use financial statements as basis for decision making within the companies. These decisions include supplies manufacturing, buying and developments. c. Lenders They use the financial statements to check on the stability of the company that they are about to lend money to. They do this in order to know if the company would have the ability to pay the debt. d. Trade creditors or suppliers They use financial statements as a checking system also on the companys ability to pay short term obligations. e. Government They use financial statements as basis for taxation and regulation purposes. f. Employees They use financial statements as references for collective bargaining agreements on salaries, benefits and others. g. Customers They need financial statements as proof of the companys ability to sustain its operations. h. General public They may be interested in financial statements for varied reasons. 2. Elements of a financial statement. 2 a. Assets Are probable future economic benefits obtained or controlled by a particular entity as a result of past transactions or events.

Accounting Basics. (n.d.). Introduction to Accounting: Users of Financial Statements. Retrieved November 22, 2012, from Accounting Basics: http://www.accountingverse.com/accounting-basics/users-of-financial-statements.html David Spiceland, J. F. (2007). Intermediate Accounting,4th Edition. McGraw-Hill.

2J.

DE TORRES, Ginalynn Marriel A. 3LM2 ACCT100

b. Liabilities Are probable future sacrifices of economic benefits arising from present obligations of a particular entity to transfer assets or provide services to other entities in the future as a result of past transactions or events c. Equity Also known as net assets, called shareholders equity or stockholders equity for a corporation, is the residual interest in the assets of an entity that remains after deducting liabilities. d. Investments by owner Are increases in equity resulting from transfers of resources (usually cash) to a company in exchange for ownership interest. e. Distributions to owners Are decreases in equity resulting from transfers to owners. f. Revenues Are inflows or other enhancements of assets or settlements of liabilities from delivering or producing goods, rendering services, or other activities that constitute the entitys on going major, or central, operations. g. Expenses Are increases in equity from peripheral, or incidental, transactions of an entity. h. Gains Are outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or other activities that constitute the entitys on going major, or central, operations. i. Losses Represent decreases in equity arising from peripheral, or incidental, transactions of an entity. j. Comprehensive income Is the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

DE TORRES, Ginalynn Marriel A. 3LM2 ACCT100 3. Careers available for Accountants and professionals trained in accounting. a. Auditors b. Financial Consultants c. Financial Analysts d. Managers e. Accounts Specialists f. Professors Works Cited Accounting Basics. (n.d.). Introduction to Accounting: Users of Financial Statements. Retrieved November 22, 2012, from Accounting Basics: http://www.accountingverse.com/accounting-basics/users-of-financialstatements.html J. David Spiceland, J. F. (2007). Intermediate Accounting,4th Edition. McGraw-Hill.