Users and Uses of Financial Information

In every financial accounting textbook, the authors explain in detail about "Users and Uses of Financial Accounting." Information such as cash flow statements, income statements, and balance sheets are important documents that are kept to ensure that the company is recording everything correctly. The users of this accounting information are divided into two categories, internal and external users.

The internal users of accounting information are the managers who organize, operate and plan daily business routine. They are directly affiliated with the company and use administrative accounting, which includes in-depth reports used to determine financial strengths and weaknesses. For example, internal users would include management, finance, marketing, and human resources. An example of a human resource manager would be that he or she has to ensure the rights of their employees by using wage information along with other data. Important questions arise with internal users. A question for a marketing manager would include, "What price for an Apple I Pad will maximize the company's net income?"

External users are groups of individuals that are outside organizations, and they use accounting to make financial decisions. An example of an external user would include a creditor, who uses accounting to evaluate the risks of granting credit. Taxing authorities, investors, and customers are also external users. External users would receive limited financial information from a company such as financial statements. These statements are the backbone of financial accounting and they give the external users enough information to inform them of the company's economic position. Assets, liabilities, revenues, and expenses are of great importance to users of accounting information. For business purposes, it is customary to arrange this information in the format of four different financial statements; Balance sheet, income statement, retained earnings statement, and statement of cash flows.

The purpose of the income statement is to report the success or failure of the company's operations for a period of time. The income statement lists the company's revenues followed by it expenses. A key point to recall when preparing an income statement is that amounts received from issuing stock are not revenues, and amounts paid out as dividends are not expenses. Therefore they are not reported on the income statement. Retained earnings statement shows the amounts and causes of changes in retained earnings during the period. The time period is equivalent to the time covered on the income statement. Financial statement users can evaluate dividend payment practices by monitoring the retained earnings statement. Some investors seek companies that have a history of paying high dividends, while others seek companies that reinvest earnings to increase the company's growth.

The balance sheet is based on this equation: Assets = Liabilities + Stockholders Equity. This equation is referred to as the basis accounting equation. The balance sheet reports the company's assets, liabilities and owners equity. It is a financial window to the company at a specific point in time. Claims are divided into two categories: claims of creditors, which are called liabilities and claims of owners, which are called stockholders equity. On the balance sheet it lists the company's financial position as of a specific date in this order: assets first, then liabilities and stockholder's equity. A note to self about stockholders equity is that it is composed of common stock and retained earnings. Finally there is the statement on cash flows. The purpose of the statement of cash flows is to provide financial information about the cash receipts and cash payments of a business for a specific period of time. Users are interested in the statement of cash flows because they want to get a better understanding of what is happening to a company's most important resource. The statements of cash flows answer these following questions: 1) Where did cash come from during the period? 2) How was the cash used during the period? 3) What was the change in the cash balance during the period? The statement of cash flows also organizes and reports the cash generated used in the following activities: financing, investing, and operating. All businesses are involved with these three types of activities.

Financing activities is described as taking money to make money. The two sources of outside funds for corporations are borrowing money and selling shares of stock in exchange for cash. Investing activities involve the purchase of the resources company's need in order to operate such as sale of long-term investments, property, plant, and equipment. Finally there is operating activities. Once a business has the assets it needs to get started it can begin its operations. Operating activities convert the items reported on the income statement to cash.

In conclusion, the users of financial statements are people who use financial documents for a large variety of business purposes and their ability to make decisions using these statements helps them to succeed in the business world. Students have a chance to succeed in business if they have the knowledge of professionals who use financial statement analysis techniques and tools used on a day-to-day basis.

Why is Education a Must For Everyone?

Each of us must have a good education. It is a requirement for us to do better in life. We all know about the quote that says "Education is the key to success." This is true, in a sense that we are capable of being successful and will reach high in life if we are educated. Starting our childhood years, we are being educated. From primary education, to our high school years, then comes college, and even higher degrees. After we have our practitioners, we still continue to educate ourselves by researching and other activities.

Education is what broadens our horizons for us to have a better and wider understanding of the world around us. It will help us know how things are working, and how they should be operated. Being in a civilized society, we need to have more knowledge on what the modern world has to offer. If not, then we can not live our daily lives the way other people do.

Also, we are in need of education because the economy encourages us to have the chance of contributing to it. We can develop talents that we can use in helping out country. The intelligence we can acquire from the people who educate us will give us the ability to be better citizens. We can all see how advanced our society is today. It was all the contribution from earlier people who were once just youths that educated them so that they gain knowledge of the world around them. Everything we see not that we are using is based upon what they have learned, and the ideas that they came up with based on the things they learned.

Just imagine how the world would be 50 years from now if education will continue. The future generations would have easier lifestyles, greater success, and happier living. People may have longer life expectancies by developing modern medicines or any science contributions. The Governments might be more secured and strong. Technology can be in its peak. All of these things are coming from a single foundation and that is education.

Also, people that are well-educated are more confident. They are well respected by others. We can always gain the praises that we want when we get a proper education. It is our key to have a better life. Better, not only because we are secured financially, but also because we have the pride and self esteem that is built upon knowledge.

So before you think of quitting school and thinking you are tired of those study routines, think of what you might be letting go if you pause your education. Time never waits for you. We better act now.

Online Shopping Lingo: Abbreviations and Acronyms

Visiting coupon, refunding or bargain sites may, at first, seem
Like visiting a foreign country. You see phrases such as:

GDA! BBW B & M BOGO on soaps, HTH

And you think WHAT? Huh? What are they talking about? What
Language is THAT?

(Translation: Good Deal Alert! Bath & Body Works
Brick-and-mortar store has buy-one-get-one on soaps, hope this
Helps!)

I mean, it's enough to make you want to TYHO!
(Tear Your Hair Out – I made that one up.)

Before you click away in frustration, let me reassure you that
It IS possible to speak like a native – you just need a guide to
The terminology, acronyms, abbreviations, definitions and common
Word usage found on rebate and premium product lists, coupon and
Online code lists, and reimbursement and trading forums.

Each site you visit may have its own particular phrases, but
Generally speaking the most common terms are found in the list
Below.

TTFN …

B & M = Brick & Mortar

B1G1F = Buy One Get One Free

BOGO = (the same as B1G1), Buy One, Get One (usually free)

C / O = Cash Off or Cents Off

CPN = Coupon

CRT = Cash Register Tape

CSR = Customer Service Reps

CVS = A pharmacy / drug store like Rite-Aid

DB = Dear / Darling / Darn Brother

DCRT = Dated Cash Register Receipt

DD * = Dear / Darling / Darn Daughter

DG = Dear / Darling / Darn Girlfriend

DH = Dear / Darling / Darn Husband

DND = Do Not Double

DS * = Dear / Darling / Darn Son

DUPES = Duplicates

DW = Dear / Darling / Darn Wife

EB = Extra Bucks (CVS)

ECB = Extra Care Bucks (CVS)

ESR = Easy Saver Rebate (Walgreens monthly rebate)

FAB = From another Board

GC = Gift Certificate

GDA = Good deal alert

GWP = Gift With Purchase

H / F = Handling Fee

HT / HGT = Hang tag

ISO = In Search Of

LMK = Let Me Know

LOL = Laughing Out Loud and / or Lots of Luck

LPG = Lower Price Guarantee

LSASE = Long self addressed stamped envelope

MIB = Mint in Box

MIL = Mother-in-Law

MMV = Mileage May Vary

MS = Mystery Shopper

NAZ = Name Address Zip code

NED = No expiration date

NIB = New in box

NOCC = No Credit Card

NWOT = New WithOut Tags

NWT = New With Tags

OBO = Or Best Offer

PLMK = Please let me know

POB = Post Office Box

POP = Proof of Purchase

PP = Purchase Price

PPHF = PayPal Handling fee

PREM (Premium) = An item received from a refund offer.

PSTG = Postage

Qualifier (Q) = Proof of Purchase.

RAOK = Random Act of Kindness

RP = Rewards Programs

SAHM = Stay At Home Mom

SASE = Self Addressed Stamped Envelope

SMP = Particularly Marked Packages

TMF = Try Me Free

TOS = Terms of Service

TTFN = Ta ta for now

TY / ty = Thank you

UNL = Unlimited

UPC = Universal Product Code

W / L or WL = Wish list

WAHM = Work at home mom

Winetags = coupons found around the neck of a wine bottle

YMMV = Your Merchandise (or Mileage) May Vary

* (Add an S for step _ so DSD is Dear / Darling / Darn Step-Daughter)

Why Shop at Online Stores?

As the season changes, everyone wants to get out and buy cool clothes and dresses. Some prefer to go shopping with friends at all the trendy stores. A new season means a new wardrobe and a whole new line up clothes. While nothing beats the fun of hunting for a dress or the perfect pair of shoes with a friend, you can now do this more comfortably. I am, of course, talking about the vast array of online stores that have cropped up to cater to your every need.

Reason 1: Online stores come in all shapes and sizes, specifically speaking. They may cater to a particular type of shopper, or they may sell a wide variety of clothes and accessories. That is not the only purpose of online stores. At these websites you can find a lot of useful information about the latest trends. What is in this season? And what is out? You can find the answers to all these questions and more at these stores.

Reason 2: Online stores are not just places for women shoppers. Most stores have a separate section for men. The kid's section is also worth taking a peek at if you are looking for some new clothes for your toddler. In fact, the wide range of selections available often makes decisions a lot harder, but no less fun. Online stores make the shopping experience much easier and hassle-free. If you are not comfortable with the price tag of an item, you can simply look elsewhere. The World Wide Web is a big place, which means that there are countless places to shop. However, the best stores offer high quality dresses and accessories at affordable prices. Once you find a good online store, you should stick with it.

Reason 3: Do you know what is in style this season? You are sure to find all the trendiest clothes online. You can buy dresses online, and have them shipped right to your home. Many online stores even offer free shipping within the United States. The important thing to remember when shopping online is to keep an open mind and lots of available time on your hands. Most online stores stock more items than any of your local clothing stores. It is easy to get lost in a mire of fashionable clothes, accessories, and shoes. If you want to save time, then stick to the items you absolutely need and leave random browsing for a later time.