Accounting in Action: Accounting Principles, Ninth Edition
Accounting in Action: Accounting Principles, Ninth Edition
Action
Chapter
1-1 Accounting Principles, Ninth Edition
Study
Study Objectives
Objectives
Chapter
1-2
Accounting
Accounting in
in Action
Action
Using the
The Building The Basic
What is Basic Financial
Blocks of Accounting Accounting
Accounting? Statements
Accounting Equation Equation
Chapter
1-3
What
What is
is Accounting?
Accounting?
Chapter
1-4 SO 1 Explain what accounting is.
What
What is
is Accounting?
Accounting?
Illustration 1-1
Three Activities Accounting process
Chapter
1-5 SO 1 Explain what accounting is.
Who
Who Uses
Uses Accounting
Accounting Data?
Data?
Internal Users
Management IRS
Human Investors
Resources
There are two broad
groups of users of Labor
financial information: Unions
Finance
internal users and
external users. Creditors
Marketing
SEC
Customers External
Users
Chapter
1-6 SO 2 Identify the users and uses of accounting.
Who
Who Uses
Uses Accounting
Accounting Data?
Data?
Common Questions Asked User
1. Can we afford to give our
employees a pay raise? Human Resources
2. Did the company earn a
satisfactory income? Investors
3. Do we need to borrow in the
near future? Management
4. Is cash sufficient to pay
dividends to the stockholders? Finance
5. What price for our product
will maximize net income? Marketing
6. Will the company be able to
pay its short-term debts? Creditors
Chapter
1-7 SO 2 Identify the users and uses of accounting.
The
The Building
Building Blocks
Blocks of
of Accounting
Accounting
Financial Statements
Various users Balance Sheet
need financial Income Statement
Statement of Owner’s Equity
information Statement of Cash Flows
Note Disclosure
Chapter
1-9 SO 4 Explain generally accepted accounting principles and the cost principle.
The
The Building
Building Blocks
Blocks of
of Accounting
Accounting
Chapter
1-10 SO 4 Explain generally accepted accounting principles and the cost principle.
The
The Building
Building Blocks
Blocks of
of Accounting
Accounting
Chapter
1-11 SO 4 Explain generally accepted accounting principles and the cost principle.
Assumptions
Assumptions
Owner’s
Assets = Liabilities +
Equity
Owner’s
Assets = Liabilities +
Equity
Owner’s
Assets = Liabilities +
Equity
Owner’s
Assets = Liabilities +
Equity
Illustration 1-6
Illustration 1-6
Record/
Don’t Record
Companies
Companies prepare
prepare four
four financial
financial statements
statements from
from
the
the summarized
summarized accounting
accounting data:
data:
Owner’s Statement
Income Balance
Equity of Cash
Statement Sheet
Statement Flows
Chapter
1-33 SO 8 Understand the four financial statements and how they are prepared.
Financial
Financial Statements
Statements Income Statement
Chapter
1-34 SO 8 Understand the four financial statements and how they are prepared.
Financial
Financial Statements
Statements
Net income is needed to determine the
ending balance in owner’s equity.
Illustration 1-9
Financial statements and
their interrelationships
Chapter
1-35
Financial
Financial Statements
Statements Owner’s Equity Statement
Chapter
1-36 SO 8 Understand the four financial statements and how they are prepared.
Financial
Financial
Statements
Statements
The ending
balance in
owner’s equity
is needed in
preparing the
balance sheet
Illustration 1-9
Financial statements and
their interrelationships
Chapter
1-37
Financial
Financial Statements
Statements Balance Sheet
Illustration 1-9
Financial statements and
their interrelationships
Chapter
1-38 SO 8 Understand the four financial statements and how they are prepared.
Financial
Financial
Statements
Statements
Illustration 1-9
Financial statements and
their interrelationships
Chapter
1-39
Financial
Financial Statements
Statements
Chapter
1-40 SO 8 Understand the four financial statements and how they are prepared.
Financial
Financial Statements
Statements Statement of Cash Flows
Illustration 1-9
Financial statements and
their interrelationships
Chapter
1-41 SO 8 Understand the four financial statements and how they are prepared.
Accounting
Accounting Career
Career Opportunities
Opportunities
Public Accounting
Careers in auditing and taxation serving the general public.
Private Accounting
Careers in industry working in cost accounting, budgeting,
accounting information systems, and taxation.
Opportunities in Government
Careers with the IRS, the FBI, the SEC, and in public
colleges and universities.
Forensic Accounting
Careers with insurance companies and law offices to conduct
investigations into theft and fraud.
Chapter
1-42 SO 9 Explain the career opportunities in accounting.
Copyright
Copyright
Copyright © 2009 John Wiley & Sons, Inc. All rights reserved.
Reproduction or translation of this work beyond that permitted
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assumes no responsibility for errors, omissions, or damages,
caused by the use of these programs or from the use of the
information contained herein.
Chapter
1-43