4.01C Students will watch YouTube https://www.youtube.com/watch?

v=PxnfbMBUFwM
and answer the following questions:

1. What does accounting information assist users to do?

2. What are the two categories of users of accounting information?

Internal & External

3. What is the definition for internal users?

The people who work for the company

4. What are the three internal users of accounting information?

Owners, managers and employees

5. Why do managers need to use accounting information?

To plan.

6. List four external users of accounting information.

The government, Customers, Public and auditors

7. How do investors use accounting information?

Determine the risk of investing in your organization

8. What specific members of the public might be interested in accounting

information?
Journalist, Academics, Investors

9. Who checks the accuracy of accounting reports of businesses?

Auditors

4.01E NOTES - FINANCIAL STATEMENTS

Students will access the following website:
https://corporatefinanceinstitute.com/resources/knowledge/accounting/three-financial-st
atements/

Income Statement Balance Sheet Cash Flow

Time Period of time A point in time Period of time
Purpose Profitability Financial position Cash movements

Measures Revenue, expenses, Assets, liabilities. Increases and

profitability Shaeholders’ decreases in cash
equity

Starting Point Revenue Cash balance Net income

Ending Point Net income Retained Cash balance

earnings

Formula Revenue - Assets -

expenses= Profit Liabilities =
Owners Equity
(Revenue -
(Assets =
Expenses - COGS=
Liabilities _ OE)
Net profit)

1. Which statement has Liabilities? ___________Balance

Sheet__________________________

2. Where can we find Expenses? _____Income

Statement__________________________________

3. Which statement has the Cost of Goods Sold? _______Income

Statement___________________

4. Which statement list the Assets? ____________Balance

Sheet_________________________

5. Which statement changes in cash per period? ____________Cash flow

statement_______________