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Ch 1: Introduction to Accounting

About This Chapter

Watch enlightening video lessons and find out about many different aspects of accounting. Learn about GAAP, accounting ethics, technology in accounting and more.

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

VideoObjectives
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.

5 Lessons in Chapter 1: Introduction to Accounting
Test your knowledge with a 30-question chapter practice test
What Is Accounting? - Purpose, Importance & Relationship to Business

1. What Is Accounting? - Purpose, Importance & Relationship to Business

Learn the definition of accounting and understand the basic accounting equation. Identify the purpose and importance of accounting, and explore the relationship between accounting and business.

External and Internal Users and Uses of Accounting

2. External and Internal Users and Uses of Accounting

The two types of users in accounting are external users like investors, creditors, and the government, and internal users, such as business owners, managers, and, of course, a company's accountant. Learn how external and internal users use accounting information, such as income statements, statements of retained earnings, balance sheets, and statements of cash flows.

What Is GAAP? - The Generally Accepted Accounting Principles

3. What Is GAAP? - The Generally Accepted Accounting Principles

The Generally Accepted Accounting Principles, or GAAP, are a specific set of guidelines created by the Financial Accounting Standards Board aimed at helping publicly traded companies create financial statements. Explore the history of GAAP and learn about the accounting factors that influence GAAP.

The Importance of Ethics in Accounting

4. The Importance of Ethics in Accounting

In accounting, ethics help accountants make the right financial decisions that are in alignment with moral duty and obligation. Discover the importance of ethics in accounting as well as the Sarbanes-Oxley Act of 2002.

Technology in Accounting: The Growing Role of Technology in Accounting

5. Technology in Accounting: The Growing Role of Technology in Accounting

In accounting, technology helps with producing reports and generating financial statements, which all makes the process of accounting easier. Discover the history and role of technology in accounting.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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