Acct076 Chp 1 Acctg
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Acct076 Chp 1 Acctg Acct076 Chp 1 Acctg Presentation Transcript

    • College Accounting
    Heintz & Parry 20 th Edition
    • Introduction to Accounting
    1 Chapter
    • Describe the purpose of accounting
    1
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPTAA048430.JPG
    The Purpose of Accounting
    • To provide:
    • Financial information about the current operations and financial condition of a business to individuals and organizations
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPT256021.jpg
    Who Are the Users of Accounting Information?
    • Owners
    • Managers
    • Creditors
    • Government Agencies
    • Describe the
    • accounting process.
    2
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPTAA048434.JPG
    The Accounting Process
    • Accounting is a system of:
    • Gathering financial information about a business and reporting this information to users
  • Step One Looking at events that have taken place and thinking about how they affect the business. ANALYZING
  • Step Two Entering financial information about events into the accounting system. RECORDING
  • Step Three Sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events. CLASSIFYING
  • Step Four The aggregation of many similar events to provide information that is easy to understand. SUMMARIZING
  • Step Five Telling the results. Use of numbered tables in accounting is common. REPORTING
  • Step Six Deciding the meaning and importance of the information in various reports. INTERPRETING
    • Define GAAP and describe the process used by FASB to develop these principles.
    3
  • GAAP
    • Generally Accepted Accounting Principles (GAAP)
    • Developed by the Financial Accounting Standards Board (FASB)
    • Procedures and guidelines to be followed in the accounting and reporting process
  • Process Used by FASB to Develop GAAP
    • Identify an accounting issue
    • Place on the agenda
    • Research an issue
    • Issue a discussion memorandum
    • Hold public hearings
    • Issue an exposure draft
    • Issue a Statement Of Financial Accounting Standards (SFAS)
    • Define three types of business ownership structures.
    4
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPT200022011-001.jpg
    Three Types of Ownership Structures
    • Sole proprietorship
    • Partnership
    • Corporation
    Use a call out box like this or like below.
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPT360009C.jpg
    Sole Proprietorship
    • One owner
    • Owner assumes all risk
    • Owner makes all decisions
    Use a call out box like this or like below.
  • Partnership
    • Two or more partners
    • Partners share risks
    • Partners may disagree on how to run the business
  • Corporation
    • Stockholders
    • Stockholders have limited risk
    • Stockholders may have little influence on business decisions
    • Classify different types of businesses by activities.
    5
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPT200023529-001.jpg
    Types of Businesses
    • Service business
    • Merchandising business
    • Manufacturing business
  • Service Business A business that provides a service. Travel Agency Physician Computer Consultant
  • Merchandising Business A business that buys a product from another business to sell to customers. Department Store Jewelry Store Pharmacy
  • Manufacturing Business A business that makes a product to sell. Automobile Manufacturer Toy Factory Furniture Maker
    • Identify
    • career opportunities in accounting.
    6
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPT360001A.jpg
    Career Opportunities in Accounting
    • Accounting clerk
    • Bookkeeper
    • Para-accountant
    • Accountant
  • Accounting Clerk
    • Record, sort, and file accounting information
    • Often specialize in one area (such as cash, payroll, accounts receivable, accounts payable, inventory, or purchases)
    • Usually have at least one year of accounting education
  • Bookkeepers
    • Supervise the work of accounting clerks
    • Help with daily accounting work
    • Summarize accounting information
    • Help managers and owners interpret accounting information
    • Usually have one to two years of accounting education and experience as an accounting clerk
  • Para-Accountants
    • Provide many accounting, auditing, or tax services under the direct supervision of an accountant
    • Have two years of accounting education or significant accounting and bookkeeping experience
  • Accountants
    • Design the accounting information system
    • Focus on analyzing and interpreting information
    • Look for important trends in the data
    • Study the impact of alternative decisions
    • Enter the field with a college degree in accounting
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPTAA048502.JPG
    Accounting Careers
    • Public accounting
    • Private accounting
    • Governmental and not-for-profit accounting
    • C:Documents and Settings janderson DesktopPhotos to use for Heintz PPTAA048448.JPG
    Public Accounting
    • Offer services to the public
    • CPA (Certified Public Accountant)
    • Auditing, Taxation, Management Advisory Services
  • Private Accounting
    • Employees of private businesses
    • Controller
    • Accounting Information Systems; Financial, Cost, and Tax Accounting; Budgeting; and Internal Auditing
    • CMA (Certified Managerial Accountant)
    • CIA (Certified Internal Auditor)
  • Governmental and Not-for-Profit Accounting
    • Work in all levels of government
    • Also employed by universities, hospitals, charities, etc.
    • Gather and report financial information