财务会计 第一章the financial statements.pptxVIP

The Financial StatementsChapter 1Learning Objective 1Use accounting vocabulary.Accounting LanguageAccounting is an information system that: Measures business activitiesProcess data into reports (financial statements)Communicates results to decision makersAccounting LanguageFinancial Statements: Financial information about a business entity that is prepared in a systematic report format that can be used by decision makers to make decisionsIncomeStatementBalanceSheetStatement ofCash FlowThe Flow of Accounting Information1. People make decisions.2. Business transactions occur.3. Businesses report their results.Users of Financial StatementsIndividualsGovernmentregulatoryagenciesTax AuthoritiesInvestors andcreditorsNon-profitorganizationsFinancial AccountingSummarize business transactions of business entity for a specified periodUsers External decision makersInformation must: Be presented in systematic reports meet GAAP standards for relevance and reliability Management AccountingFinancial and operating data about an organization’s activities, processes, operating units products services and customersUsers - internal decision makersInformation - can generated using assumptions - Future oriented - not governed by GAAPEthics in AccountingInformation must be:RelevantReliableInformation has predictiveor feedback valueInformation is verifiableTimelyInformation must be objectiveCan influence a decisionEthics in AccountingIntegrity is built in financial accounting as follows:Generally accepted accounting principles (GAAP)Internal Control StructureAudits of financial statementsAccounting Standards Board of the Canadian Institute of Chartered AccountantsSecurities commissionsEthics in Accounting and BusinessStandards of professional conduct for accountantsSelf-regulating bodies of accountantsCICACGAACSMACHow to Organize a BusinessProprietorshipsPartnershipsCorporationsCorporationsStocksCanadian Business Corporation ActShareholdersBoard ofDirectorsChief Operating Officers, P