[理学]ch03 财务报表基础知识.ppt

The Role of Accounting in business Chapter three Learning Objectives After studying this chapter, you should be able to… Describe the types and forms of businesses, how businesses make money, and business stakeholders. Describe the three business activities of financing, investing, and operating. Learning Objectives Define accounting and describe its role in business. Describe and illustrate the basic financial statements and how they interrelate. Describe eight accounting concepts underlying financial reporting. Learning Objective 1 Describe the types and forms of businesses, how businesses make money, and business stakeholders. Three Types of Businesses Operated for Profit Manufacturing Businesses Merchandising Businesses Service Businesses Forms of Business Proprietorship Partnership Corporation Limited Liability Company Considerations in Choosing a Form of Business Organization Ease of formation Ability to raise capital Legal liability Taxation Limitation on life Differences in Forms of Business Organization How Do Businesses Make Money? Provide goods or services to customers. Which goods or services should be offered? It depends on how the business plans to gain an advantage over its competitors to make money and maximize profits. Profits Business Stakeholders Who are business stakeholders and how are they related to the company? Business stakeholders are people or entities that have an interest in the economic performance and well-being of a business. Business Stakeholders Learning Objective 2 Describe the three business activities of financing, investing, and operating. Business Activities Financing Activities Obtaining funds to begin and operate a business by borrowing money or issuing shares of ownership. Borrowing creates a liability. Accounts Payable; Bonds Payable; Notes Payable Issuing ownership shares creates capital stock. Investing Activities Obtaining assets to start and operate a business. Tangible Assets Includes Land, Property, and Equ