Explain the role of financial accounting and financial reporting. Explain the way they related.

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Answer 1

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Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

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Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Coronado Fire, Inc. manufactures steel cylinders and nozzles for two models of fire extinguishers: (1) a home fire extinguisher and (2) a commercial fire extinguisher. The home model is a high-volume (54,000 units), half-gallon cylinder that holds 2 1/2 pounds of multi- purpose dry chemical at 480 PSI. The commercial model is a low-volume (10,200 units), two-gallon cylinder that holds 10 pounds of multi-purpose dry chemical at 390 PSI. Both products require 1.5 hours of direct labor for completion. Therefore, total annual direct labor hours are 96,300 or [1.5 hours x (54,000+ 10,200)]. Estimated annual manufacturing overhead is $1,566,090. Thus, the predetermined overhead rate is $16.26 or ($1,566,090 ÷ 96,300) per direct labor hour. The direct materials cost per unit is $18.50 for the home model and $26.50 for the commercial model. The direct labor cost is $19 per unit for both the home and the commercial models. The company's managers identified six activity cost pools and related…

Answer 2

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

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Answer 3

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

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Answer 4

Question

Process of recording, summarizing, and analyzing financial information to prepare financial statements, and making them available to stakeholders, thereby enabling them to make an informed decision about the company. Financial reporting is an extension of financial accounting that deals with the presentation of financial information in accordance with the requirements of prescribed accounting standards.

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

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Answer 5

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

Answer 6

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

Answer 7

Chapter 1, Problem 1GI

To determine

Explain the role of financial accounting and financial reporting. Explain the way they related.

Answer 8

Expert Solution & Answer

Explanation of Solution

Financial accounting: It is the process of recording, summarizing, and reporting all the financial transactions related to a business in the financial statement for a certain period. The financial statement contains of the balance sheet, income statement, statement of retained earnings, and the cash flow statement.

Financial reporting: Financial reporting is the procedure to communicate the information obtained from the financial statements prepared. It is necessary to disclose the data to various stakeholders as various decisions need to be taken by the stakeholders.

The role of financial accounting is recording, summarizing, and reporting all the financial transactions in the financial statement of the business over a period of time.

The role of financial reporting is to communicate the information to the users, obtained from the financial statements.

Financial reporting communicates the information obtained from the financial accounting.

Answer 9

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Answer 10

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Answer 11

Ch. 1 - Prob. 1GI Ch. 1 - Prob. 2GI Ch. 1 - Prob. 3GI Ch. 1 - Prob. 4GI Ch. 1 - Prob. 5GI Ch. 1 - Prob. 6GI Ch. 1 - Prob. 7GI Ch. 1 - What are the two primary forces determining the...Ch. 1 - Prob. 9GI Ch. 1 - Prob. 10GI

Explain the role of financial accounting and financial reporting. Explain the way they related.

Explain the role of financial accounting and financial reporting. Explain the way they related.

Explanation of Solution

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