1 • C H A P T E R Accounting Information: Users and Uses
Learning Objective 1 • Describe the purpose of accounting and explain its role in business and society.
What is the definition and purpose of bookkeeping? • How is this done? 3 Step Process
What is the Nature of Accounting? Explain What Each Term Means. Quantitative Financial Useful Decision Making
What are the Sources of Business Capital? Sources of Business Capital
What are Uses of Business Resources? Uses of Business Resources
To produce and market goods and services (resulting in revenues) Why Do Businesses Perform the Following Functions?
Produce and market goods and services (resulting in revenues) How is the Revenue a Business Generates Used?
Learning Objective 2 • Identify the primary users of accounting information.
Investment, purchase, sale, or transaction 2. Record, 3. Classify, and 4. Summarize transaction Account, amount, classification Balance sheet, Income statement, Statement of cash flows 5. Report summaries The Accounting Cycle 1. Analyze business event
Learning Objective 3 • Describe the environment of accounting, including the effects of generally accepted accounting principles, international business, ethical considerations, and technology.
Accounting Environment • Accountants follow generally accepted accounting principles (GAAP), which are authoritative guidelines that define accounting practice at a particular time.
Ethics in Accounting • The Code of Professional Conduct (www.aicpa.org) • Adopted by the AICPA. • Holds to what three key principles? Members are subject to disciplinary action.
Learning Objective 4 • Analyze the reasons for studying accounting.
Public Accounting Industry Government or Nonprofit Graduate Education Accounting Opportunitieswww.startheregoplaces.com
The End of Chapter One Advice From Kids "If You're Gonna Fight, Use Pillows."