Paper

Accounting

Using Financial Information and Accounting

Outline of Chapter

Accounting > Significance

> Financial Statements

> Procedures

The significance of accounting : Accounting the process of collecting, analyzing, summarizing and reporting financial data.

Discussion : Elaborate each phase of data collecting, data analysis, data summarization and data reporting.

Data Summarization :

Data Analysis : categorize expense

Data Summarization :

Data reporting :

Discussion : What can you understand about the company through the above process?

Who uses financial reports?

Accounting System

> Internal Reporting Managerial Accounting - Sales Reports

- Production Cost Reports

- Other Detailed Reports

> External Reporting Financial Accounting : use by certain company

They can buy stock but basically for investment

- Balance Sheet

- Income Statement

- Statement of Cash Flows

( Information is important not only for inside people but also outside people

called financial statement.)

Accounting Standards

Discussion : Paraphrase the significance of accounting standards by using the following terms

Why do we need it ? > To get the exact number of their expense, know precise information.

Why don’t we just make it our own way? > reliable (depends on nation)

> not all company use same standards

for example; 123 counties use IFRS

(London) more flexible use market value.

The Accounting Profession : work for certain company

Public Accountants

– Independent accountants who serve organizations and individuals on a fee basis

- Auditing

- Certified Public Accountants (CPA)

Private Accountants

- Accountants employed by one company to serve it

- Certified Management Accountant (CMA) : some company need to employ CMA.

Value, Cash and Liquidity

Value is used quite often in economics and management, for instance,...