会计基础horngren_acct7_ch01-1.ppt

Mr. 王金喜 E-mail: www3men@163.com Tel-: Accounting and theBusiness Environment Chapter 1 Objective 1 Use accounting vocabulary Accounting... Accounting... Business Activities Financing Activities. Obtaining capital from owners and creditors. Repaying creditors and paying a return to owners. Investing Activities. Spending the capital it receives in ways that are productive and will help the business achieve its objectives. Buying and selling assets to be used in the business. Business Activities (continued) Operating Activities. Selling goods and services to customers. Employing managers and workers. Buying and producing goods and services. Paying taxes. Importance of Accounting accounting is concerned with: The provision of information in financial term that will help in decisions concerning resource allocation, and the preparation of reports in financial terms describing the effects of past resource allocation decisions. Users of Accounting Information Users of Accounting Information Financial vs. Managerial Accounting Financial Accounting – Information for people outside of the company Managerial Accounting – Information for internal decision makers Governing Organizations FASB – Financial Accounting Standards Board SEC – Securities and Exchange Commission AICPA – American Institute of Certified Public Accountants IMA – Institute of Management Accountants Standards of Professional Conduct The Authority Underlying Accounting Ethics Audit Examination of company’s financial situation Performed by independent accountants Sarbanes-Oxley Act Criminal offense to falsify financial statements Public Companies Accounting Oversight Board Monitors work of accountants Types of Business Organizations Proprietorships – A business is owned by a single individual. Partnerships – A business is owned by two or more owners. Corporations – A business is owned by stockholders. Proprietorships What are some advantages? total undivided authority no restrictions