Suppose you are starting a​ business, Wholly​ Shirts, to imprint logos on​ T-shirts. In organizing the business and setting up its accounting​ records, you take your information to a CPA to prepare financial statements for the bank. Name the organization that governs the majority of the guidelines that the CPA will use to prepare financial statements for Wholly Shirts. What are those guidelines​ called?

 

The organization is called the

Financial Accounting Standards Board.

 

The guidelines are called

Generally Accepted Accounting Principles

 

that the CPA will use to prepare financial statements for Wholly Shirts.


For each user of accounting​ information, identify if the user would use financial accounting​ (FA) or managerial accounting​ (MA).

a. investor FA
b. banker FA
c. Internal Revenue Service FA
d. manager of the business MA
e. owner MA
f. stockholder FA
g. human resources director MA
h. creditor FA