Chapter 1 - Accounting: The language of business. After reading this chapter, you should be able to: Define accounting, identify and discuss career opportunities in accounting, identify the users of financial information, compare and contrast the three types of business entities, describe the process used to develop generally accepted accounting principles, define the accounting terms new to this chapter. | 1- McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Accounting: The Language of Business Section 1: What Is Accounting? Chapter 1 Section Objectives Define accounting. Identify and discuss career opportunities in accounting. Identify the users of financial information. How much cash does the business have? How much money do customers owe the business? What is the cost of the merchandise sold? What is the change in sales volume? How much money is owed to suppliers? What is the profit or loss? In running a business, you need answers to questions: QUESTION: What is accounting? ANSWER: Define Accounting Objective 1 Accounting is the process by which financial information about a business is classified, recorded, summarized, interpreted, and communicated to owners, managers and other interested parties. Accounting Clerk Many jobs are available in the accounting profession. Some examples are: Bookkeeper Accountant Identify and discuss career . | 1- McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Accounting: The Language of Business Section 1: What Is Accounting? Chapter 1 Section Objectives Define accounting. Identify and discuss career opportunities in accounting. Identify the users of financial information. How much cash does the business have? How much money do customers owe the business? What is the cost of the merchandise sold? What is the change in sales volume? How much money is owed to suppliers? What is the profit or loss? In running a business, you need answers to questions: QUESTION: What is accounting? ANSWER: Define Accounting Objective 1 Accounting is the process by which financial information about a business is classified, recorded, summarized, interpreted, and communicated to owners, managers and other interested parties. Accounting Clerk Many jobs are available in the accounting profession. Some examples are: Bookkeeper Accountant Identify and discuss career opportunities in accounting Objective 2 Managerial Accounting, or private accounting, involves working for a single business to: Establish accounting policies Provide financial advice to management Manage the accounting system Prepare and interpret financial statements Prepare tax forms and do tax planning Prepare internal reports for management Securities and Exchange Commission (SEC) Internal Revenue Service (IRS) Federal Bureau of Investigation (FBI) Department of Homeland Security (DHS) Governmental accounting involves keeping financial records and preparing financial reports as part of the staff of federal, state, or local governmental units, such as: Inside The Business Outside The Business Employees Financial Reports Identify the users of financial information Objective 3 Sarbanes-Oxley Act The Act led to a major change in the regulatory environment. The Act was designed as a regulatory crackdown on corporate fraud and corruption. Accounting: The Language of Business Section 2: .
