acct076 chp 1 acctg
TRANSCRIPT
![Page 1: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/1.jpg)
College
Accounting
College
Accounting
Heintz & ParryHeintz & Parry2020thth Edition Edition
Heintz & ParryHeintz & Parry2020thth Edition Edition
![Page 2: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/2.jpg)
Introduction to AccountingIntroduction to Accounting
11ChapterChapter
![Page 3: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/3.jpg)
1
Describe the purpose of
accounting
![Page 4: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/4.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\AA048430.JPG
The Purpose of AccountingThe Purpose of Accounting
To provide:
• Financial information about the current operations and financial condition of a business to individuals and organizations
![Page 5: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/5.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\256021.jpg
Who Are the Users of Accounting Information?Who Are the Users of Accounting Information?
• Owners
• Managers
• Creditors
• Government Agencies
![Page 6: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/6.jpg)
2Describe the
accounting process.
![Page 7: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/7.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\AA048434.JPG
The Accounting ProcessThe Accounting Process
Accounting is a system of:
• Gathering financial information about a business and reporting this information to users
![Page 8: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/8.jpg)
Step OneStep One
Looking at events that have taken place and thinking about how they affect the business.
ANALYZING
![Page 9: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/9.jpg)
Step TwoStep Two
Entering financial information about events into the accounting system.
RECORDING
![Page 10: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/10.jpg)
Step ThreeStep Three
Sorting and grouping similar items together rather than merely keeping a simple, diary-like record of numerous events.
CLASSIFYING
![Page 11: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/11.jpg)
Step FourStep Four
The aggregation of many similar events to provide information that is easy to understand.
SUMMARIZING
![Page 12: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/12.jpg)
Step FiveStep Five
Telling the results. Use of numbered tables in accounting is common.
REPORTING
![Page 13: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/13.jpg)
Step SixStep Six
Deciding the meaning and importance of the information in various reports.
INTERPRETING
![Page 14: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/14.jpg)
3
Define GAAP and describe the process used by FASB to develop these principles.
![Page 15: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/15.jpg)
GAAPGAAP
• Generally Accepted Accounting Principles (GAAP)
• Developed by the Financial Accounting Standards Board (FASB)
• Procedures and guidelines to be followed in the accounting and reporting process
![Page 16: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/16.jpg)
Process Used by FASB to Develop GAAPProcess Used by FASB to Develop GAAP
• Identify an accounting issue
• Place on the agenda
• Research an issue
• Issue a discussion memorandum
• Hold public hearings
• Issue an exposure draft
• Issue a Statement Of Financial Accounting Standards (SFAS)
![Page 17: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/17.jpg)
4
Define three
types of
business
ownership
structures.
![Page 18: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/18.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\200022011-001.jpg
Three Types of Ownership StructuresThree Types of Ownership Structures
• Sole proprietorship
• Partnership
• Corporation
Use a call out box like this or like below.
![Page 19: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/19.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\360009C.jpg
Sole ProprietorshipSole Proprietorship
• One owner
• Owner assumes all risk
• Owner makes all decisions
Use a call out box like this or like below.
![Page 20: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/20.jpg)
PartnershipPartnership
• Two or more partners
• Partners share risks
• Partners may disagree on how to run the business
![Page 21: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/21.jpg)
CorporationCorporation
• Stockholders
• Stockholders have limited risk
• Stockholders may have little influence on business decisions
![Page 22: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/22.jpg)
5
Classify different types of
businesses by activities.
![Page 23: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/23.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\200023529-001.jpg
Types of BusinessesTypes of Businesses
• Service business
• Merchandising business
• Manufacturing business
![Page 24: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/24.jpg)
Service BusinessService Business
A business that provides a service.
Travel Agency
Physician
Computer Consultant
![Page 25: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/25.jpg)
Merchandising BusinessMerchandising Business
A business that buys a product from another business to sell to customers.
Department Store
Jewelry Store
Pharmacy
![Page 26: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/26.jpg)
Manufacturing BusinessManufacturing Business
A business that makes a product to sell.
Automobile Manufacturer
Toy Factory
Furniture Maker
![Page 27: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/27.jpg)
6
Identify
career
opportunities
in accounting.
![Page 28: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/28.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\360001A.jpg
Career Opportunities in AccountingCareer Opportunities in Accounting
• Accounting clerk
• Bookkeeper
• Para-accountant
• Accountant
![Page 29: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/29.jpg)
Accounting ClerkAccounting Clerk
• Record, sort, and file accounting information
• Often specialize in one area (such as cash, payroll, accounts receivable, accounts payable, inventory, or purchases)
• Usually have at least one year of accounting education
![Page 30: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/30.jpg)
BookkeepersBookkeepers
• Supervise the work of accounting clerks
• Help with daily accounting work
• Summarize accounting information
• Help managers and owners interpret accounting information
• Usually have one to two years of accounting education and experience as an accounting clerk
![Page 31: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/31.jpg)
Para-AccountantsPara-Accountants
• Provide many accounting, auditing, or tax services under the direct supervision of an accountant
• Have two years of accounting education or significant accounting and bookkeeping experience
![Page 32: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/32.jpg)
AccountantsAccountants
• Design the accounting information system
• Focus on analyzing and interpreting information
• Look for important trends in the data
• Study the impact of alternative decisions
• Enter the field with a college degree in accounting
![Page 33: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/33.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\AA048502.JPG
Accounting CareersAccounting Careers
• Public accounting
• Private accounting
• Governmental and not-for-profit accounting
![Page 34: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/34.jpg)
• C:\Documents and Settings\janderson\Desktop\Photos to use for Heintz PPT\AA048448.JPG
Public AccountingPublic Accounting
• Offer services to the public
• CPA (Certified Public Accountant)
• Auditing, Taxation, Management Advisory Services
![Page 35: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/35.jpg)
Private AccountingPrivate Accounting
• Employees of private businesses
• Controller
• Accounting Information Systems; Financial, Cost, and Tax Accounting; Budgeting; and Internal Auditing
• CMA (Certified Managerial Accountant)
• CIA (Certified Internal Auditor)
![Page 36: Acct076 Chp 1 Acctg](https://reader038.vdocuments.site/reader038/viewer/2022103115/556870b7d8b42a3b7b8b489e/html5/thumbnails/36.jpg)
Governmental and Not-for-Profit AccountingGovernmental and Not-for-Profit Accounting
• Work in all levels of government
• Also employed by universities, hospitals, charities, etc.
• Gather and report financial information