information needs. Questions will be raised as to examples of external users and internal users and their different information needs. Then differences of financial accounting and managerial accounting will be discussed. Financial accounting is the information accumulation, processing, and communication system designed to satisfy the investment and credit decision-making information

Task Team of FUNDAMENTAL ACCOUNTING School of Business, Sun Yat-sen University Lesson 13 Managerial Accounting I: Concepts and Principles Exercise 1. Sunny Brockman has developed a new device that is so exciting he is considering quitting his job in order to produce and market it on a large-scale basis. Sunny will rent a garage for $1000 per

True and False Questions: 1. Economic interest maximization and risk aversion are two characteristics of an economic man 2. Maslow's theory of the hierarchy of needs believes that man are resourceful evaluator and maximizer 3. Firm is a coalition of economic men. 4. The economic nature of man gives rise to the emerge of accounting

1. Reasons for Issuance of Long￾Term Liabilities Debt financing may be the only availablesource of funds. Debt financing may have a lower cost. Debt financing offers an income taxadvantage. The voting privilege is not shared. Debt financing offers the opportunity forleverage

1. Conceptual Overview of Liabilities Liabilities are probable future sacrifices of economic benefits arising from present obligations of a company to transfer assets or provide services to other entities in the future as a result of past transactions or events

There is generally a higher degree of uncertainty regarding the future benefits that may be derived. Their value is subject to wider fluctuations because it may depend to a considerable extent on competitive conditions

Intermediate Accounting 8 Property, Plant And Equipment I. Classification as property, plant and equipment To be included in the property, plant, and equipment category, an asset must have three characteristics:

1.Lacy Leggs Lingerie had the following petty cash transactions in April of the current year: April 1 Wrote a $500 check, cashed it, and gave the proceeds to Kate Small, the petty cashier. 5 Purchased gift-wrapping paper, $30.30 8 Paid $49.00 COD shipping charges on teddies purchased for resale, terms FOB shipping

1. Concepts of income Intermediate Accounting 4 The Income Statement and Income Recognition Capital Maintenance Concept Under this concept, corporate income for a period of time is the amount that may be paid to stockholders during that period and still enable the corporation to be as well off at the end of the period as it was at the beginning

1. Conceptual overview and uses of the Statement of Cash Flows Intermediate Accounting 5 The Statement of Cash Flows A statement of cash flows is a financial statement of a company that shows the cash inflows, cash outflows, and net change in cash from its operating, investing, and financing activities during an accounting period, in a manner that reconciles the company's beginning and ending cash balances