Professional Documents
Culture Documents
Accounting
Accounting Information:
Information:
Users
Users and
and Uses
Uses
Learning Objective 1
Describe the purpose of accounting
and explain its role in business and
society.
What are the functions of an
accounting system?
Analyze business events to
determine if information
Analysis should be captured by the
accounting system.
1 2 3 4
Identify Gather Identify Select the
the issue information alternatives option that
will most
likely result
in the
desired
objective
What are the Sources of
Business Capital?
Investors
(Owners)
Sources of
Business Capital
Creditors
(Lenders)
Business
Earnings
What are Uses of Business
Resources?
Pay employees
Pay a return to
Produce and
owners
market goods
and services
Pay loans
(resulting in
revenues)
Pay taxes
Continue business
activity
Learning Objective 2
Lenders
Investors
Management Suppliers/Customers
Employees
Competitors
Government Agencies
The Press
What Are Accounting Reports
Used For?
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.
1. Financial statements must be
comparable and reliable.
Congress
Congress SEC
SEC FASB
FASB
Investing
Budgeting
g i n g
i n l e as
a nc g vs .
i n in
F B uy
Accounting Opportunities
Public Government
Accounting Auditor
Agencies:
J.D. GAO,
(Law)
Controller
IRS, FBI