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
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.
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.
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.
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.
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.
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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