About This Chapter
Introduction to Accounting - Chapter Summary and Learning Objectives
Accounting is found in every business. It is how a company manages the flow of money in and out of the business. Proper accounting methods allow a company to know when financial changes occur and allow a business owner to spot trends that will help him or her increase profits. Accounting also plays a very important role in keeping a company up-to-date with tax requirements. Without proper accounting, a company could be losing money and never know it or miss an important tax filing deadline, racking up huge fees and penalties. This chapter will introduce you to some of the basic ideas about accounting, such as:
- The importance of accounting in a business
- External users of accounting
- Significance of generally accepted accounting principles
- The two main groups who determine accounting principles
- Ethics in accounting
- The use of technology in accounting
|What Is Accounting? - Purpose, Importance & Relationship to Business||Examine the purpose of accounting in business and the relationship between the two.|
|External and Internal Users and Uses of Accounting||Discover the internal and external users and uses of accounting.|
|What Is GAAP? - The Generally Accepted Accounting Principles||Take a look at the meaning and significance of generally accepted accounting principles, including the two main groups who establish these principles.|
|The Importance of Ethics in Accounting||Explore why ethics are important in accounting.|
|Technology in Accounting: The Growing Role of Technology in Accounting||Find out about the role of technology in contemporary accounting practices.|
1. What Is Accounting? - Purpose, Importance & Relationship to Business
Just as French is considered the language of love, accounting is considered the language of business. In this lesson, you will learn exactly what accounting is. You will also learn the purpose of accounting, why it is important, and how it relates to the business world.
2. External and Internal Users and Uses of Accounting
Accounting has many uses. In this lesson, you will learn not only who accounting users are but also what types of accounting information is used. You will also learn the uses of that accounting information.
3. What Is GAAP? - The Generally Accepted Accounting Principles
Rules and regulations are a part of life for everyone, including those in the accounting industry. In this lesson, you will learn about GAAP standards, what they mean to accounting, and who establishes them.
4. The Importance of Ethics in Accounting
Ethics - are they really important in accounting? In this lesson, we will discuss what ethics are and what role they play in accounting; we'll also review a case that is deeply rooted in ethics. In the end, we will decide whether or not ethics are important in accounting.
5. Technology in Accounting: The Growing Role of Technology in Accounting
Change and technology go hand in hand, especially in the accounting industry. In this lesson, we will take a walk back in time and discuss some of the technological advances in accounting through the years. We will also discuss how these changes have affected the accounting process.
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Other chapters within the Accounting 101: Financial Accounting course
- Financial Statements in Accounting
- Mechanics of the Accounting Cycle
- Adjusting Accounts and Preparing Financial Statements
- Internal Controls in Accounting
- Merchandising Operations and Inventory in Accounting
- Receivables in Accounting
- Completing the Operating Cycle in Accounting
- Long-Term Assets in Accounting
- Current and Long-Term Liabilities in Accounting
- Reporting & Analyzing Equity in Accounting
- Statement of Cash Flows in Accounting
- Financial Statement Analysis in Accounting
- Studying for Accounting 101