10-MINUTE QUIZ C SECTION The following is a list of various characteristics of accounting information.  In the space provided identify each as a characteristic of either financial or management...

10-MINUTE QUIZ C
SECTION

The following is a list of various characteristics of accounting information.  In the space provided identify each as a characteristic of either financial or management accounting information.

1. 
   The information is summarized in a set of statements distributed to the public.
   


2. 
   The information is historical in nature. It reports the results of events and transactions that have already occurred.
   


3. 
   The timeliness of the information is more critical than its completeness.
   


4. 
   To increase its usefulness to investors and creditors, the information is usually accompanied by explanations from management.
   


5. 
   The information is intended to be used for planning and control decisions.
   

10-MINUTE QUIZ D
SECTION

Provide concise written answers to the following:

1. 
   Investors and creditors are interested in a company’s “cash flow prospects
   .
   ”  What two specific concerns of investors and creditors are summarized by the term “cash flow prospects?”
   


2. 
   List three financial statements that are used to communicate financial accounting information to interested external parties.
   


3. 
   Provide a brief example to illustrate that externally reported financial accounting information must be based in part on estimates, judgments, and assumptions.
   

4.Briefly explain how generally accepted accounting principles enhance the integrity of financial accounting information.