Chapter 17 - Understanding accounting and financial information. In this chapter, you will learn to: Demonstrate the role that accounting and financial information play for a business and for its stakeholders; identify the different disciplines within the accounting profession; list the steps in the accounting cycle, distinguish between accounting and bookkeeping, and explain how computers are used in accounting; | Understanding Accounting and Financial Information Chapter 17 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Demonstrate the role that accounting and financial information play for a business and for its stakeholders. Identify the different disciplines within the accounting profession. List the steps in the accounting cycle, distinguish between accounting and bookkeeping, and explain how computers are used in accounting. Explain how the major financial statements differ. Demonstrate the application of ratio analysis in reporting financial information. LEARNING GOALS Chapter Seventeen 17- Hilmarsson missed an Icelandic treat called skyr, a thick, strained, protein-rich yogurt. He perfected his yogurt and contacted a former professor for help with financing. Distribution raised cost problems that affected cash flow. SIGGI HILMARSSON Siggi’s Yogurt Profile 17- Accounting -- Recording, classifying, summarizing and . | Understanding Accounting and Financial Information Chapter 17 Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Demonstrate the role that accounting and financial information play for a business and for its stakeholders. Identify the different disciplines within the accounting profession. List the steps in the accounting cycle, distinguish between accounting and bookkeeping, and explain how computers are used in accounting. Explain how the major financial statements differ. Demonstrate the application of ratio analysis in reporting financial information. LEARNING GOALS Chapter Seventeen 17- Hilmarsson missed an Icelandic treat called skyr, a thick, strained, protein-rich yogurt. He perfected his yogurt and contacted a former professor for help with financing. Distribution raised cost problems that affected cash flow. SIGGI HILMARSSON Siggi’s Yogurt Profile 17- Accounting -- Recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties needed financial information. Outside parties - like employees, owners, creditors, unions, investors and the government - make use of a firm’s accounting information. WHAT’S ACCOUNTING? What is Accounting? LG1 17- The ACCOUNTING SYSTEM LG1 What is Accounting? 17- Managerial Accounting -- Provides information and analysis to managers inside the organization to assist them in decision making. Managerial accounting is involved with: Costs of production Costs of marketing Preparation and control of budgets Minimizing tax liabilities MANAGERIAL ACCOUNTING Managerial Accounting LG2 17- USERS of ACCOUNTING INFORMATION Users Type of Report Government tax authority Tax reports Government regulatory agencies Required reports People interested in the organization’s income Financial statements found in annual reports Managers of the firm Financial statements and internally distributed financial .
