INtro to accounting

1. Introduction to
accounting

2. Accounting
It is an information system that reports on the economic activities and
financial condition of a business or other organization.
There needs to be a system or set of rules so you are able to compare
entities to each other.

3. The language of business
It will help you succeed in business
It is the means that business information is communicated to the
stakeholders in the business

4. Stakeholders
Stakeholders are individuals and organizations that need information
about a business.
They include lenders, government agencies, employees, news reporters
and others.

5. How accounting can help you
Help you prepare a budget and keep on target.
Realize how much cash you have and if there is enough to pay bills.
Uncover places where costs can be cut.

6. Financial accounting
Branch of accounting associated with preparing reports for external
users
i.e. the bank, shareholders

7. Managerial accounting
Accounting to guide management in making decisions about the
business
i.e. break even analysis

8. Objectives of financial
accounting
To report the financial condition of a business at a point in time.
To report changes in the financial condition of a business over a period
of time.

9. Objectives continued
First, record the economic events affecting a business.
Second, summarize the impact of these events in a report called
financial statements.
Generally Accepted Accounting Principles (GAAP)

10. Who’s who in accounting
Bookkeepers-record each transaction
Accountants-prepare financial statements
Auditors-review the company’s books and look for
errors and discrepancies (could be internal or external)
Controller-in charge of the accounting department