Our North Phoenix area CPAs (certified public accountants) are here to answer questions. Contact one of the best lawyers in Phoenix if your still have legal issues:
General-purpose financial statements, to which the objectives of financial reporting apply to Phoenix certified public accountants, are directed towards the common interests of various potential users in the ability of a business enterprise to generate favorable cash flows.
General-purpose financial statements are feasible only because groups of users of financial information have generally similar needs. The general purposes not mean all-purpose, and financial statements do not necessarily satisfy all users equally well.
Each decision-maker judges what accounting information is useful to north Phoenix CPAs, and that judgment is influenced by factors such as the decisions to be made, the methods of decision-making to be used, the information already possessed from other sources, and the decision-makers capacity to help process the information.
Even users of financial statement information to make generally similar kinds of decisions differ from each other in those matters when it comes to corporate accounting.
Stockholder's equity defined: If we are accounting for a corporation, the ownership section of the balance sheet would be designated as stockholders equity and would consist of common stock issued and retained earnings.
Dividends represent a distribution of profits after taxes. Dividends paid to stockholders come out of retained earnings. The payment of dividends is a reduction of owner's equity and not an expense.
An account is a device used to record financial data. Each asset, liability and component of owner's equity, as well as income and expenses, has a separate ledger account. At the end of the accounting period, the debit or credit balance is determined in each ledger account and a trial balance is prepared to test whether the total of the debit balances equals the total of the credit balances in the ledger. For more info, contact the north Phoenix firm above.
Dividends represent a distribution of profits after taxes. Dividends paid to stockholders come out of retained earnings. The payment of dividends is a reduction of owner's equity and not an expense.
An account is a device used to record financial data. Each asset, liability and component of owner's equity, as well as income and expenses, has a separate ledger account. At the end of the accounting period, the debit or credit balance is determined in each ledger account and a trial balance is prepared to test whether the total of the debit balances equals the total of the credit balances in the ledger. For more info, contact the north Phoenix firm above.
