(BQ) Part 1 book "Financial accounting information for decision" has contents: Accounting and organizations; business activities—the source of accounting information; measuring revenues and expenses; reporting earnings and financial position,.and other contents. | F1 1 ACCOUNTING AND ORGANIZATIONS What do we need to know to start a business? I n December of 2003, Maria and Stan were very excited about starting a company to sell cookies made using their mother’s recipes. To honor their mother, they decided to call the business Mom’s Cookie Company. Realizing they did not have much money and had little business experience, the brother and sister made plans to start with a small company. They hope the business will grow as more customers become aware of their products. Maria and Stan know that accountants provide advice to help managers of companies better understand their businesses. Because they had never started a company before, they made an appointment with Ellen Coleman, an accountant who had provided helpful business advice to several of their friends. FOOD FOR THOUGHT Suppose you were in Maria and Stan’s position. What would you want to know in order to start a business? What goals would you have for the business, and how would you plan to reach those goals? What resources would you need in your business, and how would you finance those resources? How would you organize your company? Who would your customers be? How would you know whether you are reaching your goals or not? These are issues Ellen poses to Maria and Stan. Ellen: Maria: Stan: Ellen: Stan: Ellen: Maria: Ellen: Creating a successful business is not an easy task. You need a good product, and you need a plan to produce and sell that product. Stan and I think we have an excellent product. We don’t have a lot of money for equipment and other resources, but we have identified a bakery that could produce our products using our recipes and according to our specifications. Also, we have spoken with several local grocery chains that have been impressed with samples and have agreed to sell our products. Good. A primary goal of every successful business is to create value for customers. If you focus on delivering a product that customers want at a price they
