in a systematic report format that can be used by decision makers to make decisions
Income Statement
Balance Sheet
Statement of Cash Flow
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➢ meet GAAP standards for relevance and reliability
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1-8
Management Accounting
Financial and operating data about an organization’s activities, processes, operating units products services and customers
1-5
The Flow of Accounting Information
1. People make decisions.
2. Business transactions occur.
3. Businesses report their results.
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•Communicates results to decision makers
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1-4
Accounting Language
Financial Statements:
Financial information about a business entity that is prepared
1-6
Users of Financial Statements
Individuals
Government regulatory agencies
Tax Authorities
Investors and creditors
Non-profit organizations
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Users - internal decision makers
Information - can generated using assumptions - Future oriented - not governed by GAAP
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1 - 11
Ethics in Accounting and Business
Standards of professional conduct for accountants Self-regulating bodies of accountants
1 - 13
1-7
Financial Accounting
Summarize business transactions of business entity for a specified period
Users ➢ External decision makers
Information must: ➢ Be presented in systematic reports
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1-3
Accounting Language
Accounting is an information system that:
•Measures business activities •Process data into reports (financial statements)CICAFra bibliotekCGAAC
SMAC
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1 - 12
How to Organize a Business
Proprietorships
Partnerships
Corporations
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Can influence a decision
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1 - 10
Ethics in Accounting
Integrity is built in financial accounting as follows: Generally accepted accounting principles (GAAP)
1-9
Ethics in Accounting
Information must be: 1. Relevant
Information has predictive or feedback value
2. Reliable
Information is verifiable
Timely
Information must be objective
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The Financial Statements Chapter 1
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1-2
Learning Objective 1 Use accounting vocabulary.
Internal Control Structure
Audits of financial statements
Accounting Standards Board of the Canadian Institute of Chartered Accountants
Securities commissions