Financial Accounting

INTRODUCTION TO ACCOUNTING


THE LANGUAGE OF
BUSINESS

, LECTURE OBJECTIVES

1. Define accounting, identify business goals and activities, and describe
the role of accounting in making informed decisions.
2. Identify the many users of accounting information in society.
3. Explain the importance of business transactions, money measure, and
separate entity to accounting measurement.
4. Describe the corporate form of business organization.
5. Define financial position, state the accounting equation, and show how
they are affected by simple transactions.
6. Identify the four financial statements.
7. State the relationship of generally accepted accounting principles
(GAAP) to financial statements and the independent CPA’s report.
8. Define ethics and describe the ethical responsibilities of accountants.
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ACCOUNTING AS AN
INFORMATION SYSTEM
OBJECTIVE 1
Define accounting, identify business goals
and activities, and describe the role of
accounting in making informed decisions.

, Accounting Defined…
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 Accounting provides a vital service by supplying
the information decision makers need to make
reasoned choices among alternative uses of scarce
resources in the conduct of business and economic
activities.
 Accounting - a process of identifying, recording,
summarizing, and reporting economic information
to decision makers in the form of financial
statements to permit informed decisions and
judgments.