Chapter 1

1. Chapter 1 Introduction to Accounting

2. LO1 is a system that information that is Learning Objective 1Explain the purpose and importance of accounting in the information age. Accounting Identifies Records Relevant Communicates Reliable to help users make better decisions. Comparable

3. LO1 Accounting Activities • Identifying Business Activities • Recording Business Activities • Communicating Business Activities

4. LO2 Internal Users External Users • Lenders • Shareholders • Governments • Consumer Groups • External Auditors • Customers • Owners • Managers • Internal Auditors • Sales Staff • Budget Officers • Controllers Learning Objective 2 Identify users and uses of accounting. Financial accounting provides external users with financial statements. Managerial accounting provides information needs for internal decision makers.

5. LO3 Financial Managerial Taxation • Preparation • Analysis • Auditing • Regulatory • Consulting • Planning • Criminal investigation • General accounting • Cost accounting • Budgeting • Internal auditing • Consulting • Controller • Treasurer • Strategy • Preparation • Planning • Regulatory • Investigations • Consulting • Enforcement • Legal services • Estate plans • Lenders • Consultants • Analysts • Traders • Directors • Underwriters • Planners • Appraisers • FBI investigators • Market researchers • Systems designers • Merger services • Business valuation • Fraud investigation • Litigation support • Entrepreneurs Accounting-related Learning Objective 3Identify career opportunities in accounting and related fields.

6. LO3 Accounting specialists are often denoted by certifications Certificate in Management Accounting (CMA) Certified Forensic Accountant (CrFA) Certified Public Accountants (CPA) Certified Bookkeeper (CB) Certified Internal Auditor (CIA) Certified Payroll Specialist (CPS) Personal Financial Specialist (PFS) Certified Fraud Examiner (CFE)

7. LO3 Accounting Jobs by Area

8. LO4 Learning Objective 4Explain why ethics are crucial to accounting. Ethics are beliefs that distinguish right from wrong Ethics are accepted standards of good and bad behavior

9. LO4 Guidelines for Ethical Decision Making • Identify ethical concerns • Analyze options • Make ethical decision Use personal ethics to recognize ethical concern. Consider all good and bad consequences. Choose best option after weighing all consequences.

10. LO5 Learning Objective 5Explain the meaning of generally accepted accounting principles. Financial accounting practice is governed by concepts and rules known as generally accepted accounting principles (GAAP). Relevant Reliable All information must be Comparable

11. LO6 Learning Objective 6Identify the groups that establish generally accepted accounting principles. Financial Accounting Standards Board is the private group that sets both broad and specific principles. The Securities and Exchange Commission is the government group that establishes reporting requirements for companies that issue stock to the public. The International Accounting Standards Board (IASB) issues International Financial Reporting Standards that identify preferred accounting practices.

12. LO7 Learning Objective 7 Ownership Structures • A Proprietorship is a business owned by one person. • A Partnership is a business owned by two or more people, called partners. • A Corporation is a business legally separate from its owners, meaning it is responsible for its own acts and its own debts.

13. End of Chapter 1