Chp 2

$ $ $ $ The World of Business and Accounting Making Accounting Relevant Owning and operating a business takes special skills and traits. Chapter 2 What skills do you think are important for the person who owns and operates a business?

$ $ $ $ Section 1 Exploring the World of Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 2

$ $ $ $ Why It’s Important In order to participate in the world of business, you’ll want to understand how businesses are formed, organized, and operated. Section 1 Exploring the World of Business (cont'd.) Chapter 2

$ $ $ $ Section 1 Exploring the World of Business (cont'd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 2

$ $ $ $ The Environment of Business In a free enterprise system people are free to produce the goods and services they choose. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 2 Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ The Need for Profit The amount of money earned over and above the amount spent to keep the business operating is called profit. Businesses that spend more money than they earn operate at a loss. Chapter 2 The Need for a Risk-Taker Entrepreneurs transform ideas for products or services into real-world businesses. Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ ,[object Object],[object Object],[object Object],[object Object],Chapter 2 Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ Forms of Business Organizations Chapter 2 ,[object Object],[object Object],[object Object],Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ Sole Proprietorship Chapter 2 A business owned by one person. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ Partnership Chapter 2 A business owned by two or more persons, who agree to operate the business as co-owners. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ Corporation Chapter 2 A business organization that is recognized by law to have a life of its own. ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Section 1 Exploring the World of Business (cont'd.)

$ $ $ $ Section 2 Accounting: The Universal Language of Business ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 2

$ $ $ $ Why It’s Important Understanding accounting systems is the key to understanding business. Section 2 Accounting: The Universal Language of Business (cont'd.) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Chapter 2

$ $ $ $ The Accounting System Designed to collect, document, and report on financial transactions affecting the business. Section 2 Accounting: The Universal Language of Business (cont'd.) Chapter 2 ,[object Object],[object Object],[object Object],[object Object]

$ $ $ $ How the Accounting System Works Section 2 Accounting: The Universal Language of Business (cont'd.) Chapter 2 Inputs Source Documents Processing Tasks Outputs Financial and Management Accounting Reports ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

$ $ $ $ Using Accounting Reports for Making Business Decisions There are two groups that use accounting reports: Chapter 2 Section 2 Accounting: The Universal Language of Business (cont'd.) Chapter 2 ,[object Object],[object Object]

$ $ $ $ Financial Accounting Financial accounting focuses on reporting information to external users. Chapter 2 Section 2 Accounting: The Universal Language of Business (cont'd.) Chapter 2 Who Uses Financial Accounting Reports? ,[object Object],[object Object],[object Object],[object Object]

$ $ $ $ Management Accounting Management accounting focuses on reporting information to management. Chapter 2 Section 2 Accounting: The Universal Language of Business (cont'd.) Chapter 2 ,[object Object]

$ $ $ $ Accounting Assumptions Chapter 2 Section 2 Accounting: The Universal Language of Business (cont'd.) Chapter 2 ,[object Object],[object Object],[object Object]

Chp 2

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Chp 2