Accounting: Decision Making by the Numbers 2 3 4.

Slides:



Advertisements
Similar presentations
C1 - 1 Learning Objectives 1.Nature of a Business 2.The Role of Accounting in Business 3.Business Ethics 4.Profession of Accounting 5.Generally Accepted.
Advertisements

C1 - 1 Learning Objectives 1.Nature of a Business 2.The Role of Accounting in Business 3.Business Ethics 4.Profession of Accounting 5.Generally Accepted.
15 chapter Financial Accounting Better Business 3rd Edition
Presented by, Stephen Mann, CPA/ABV. Accountants Report Balance Sheet Profit and Loss or Income Statement Statements of Cash Flows Notes to Financial.
CHAPTER 8: ACCOUNTING DECISION MAKING BY THE NUMBERS.
Accounting Concepts and Procedures
EBT Method of reporting and recording financial activity of a business.
© The McGraw-Hill Companies, Inc., 2002 McGraw-Hill/Irwin Financial & Managerial Accounting The Basis for Business Decisions TWELFTH EDITION Williams Haka.
C1 - 1 Learning Objectives 1.Nature of a Business 2.The Role of Accounting in Business 3.Business Ethics 4.Profession of Accounting 5.Generally Accepted.
Using Accounting Information Business Planning Activities n Individual Point of View n Business Point of View –Planning –Budgeting.
CHAPTER 14 Analyzing and Using Financial Information,
Chapter Fourteen Accounting: Measuring how Efficiently and Effectively Resources Are Creating Value and Profit © 2007 The McGraw-Hill Companies, Inc.,
The Role of Accounting in Business Chapter 1
Accounting and Financial Management Chapters 17 and 18 BCEN 1400.
GAAP PowerPoint #4.  A formal record of the financial activities of a business  Includes four basic financial statements: ◦ Balance Sheet (Statement.
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA CHAPTER.
DECISION MAKING BY THE NUMBERS
The Role Of Accounting In Business
Chapter 12: The Role Of Accounting In Business Exploring Business 2.0 © 2012 Flat World Knowledge.
Finance and Accounts Analysing Accounts Pr. Zoubida SAMLAL.
Understanding Financial Statements Gerald P. Weinstein, PHD, CPA KPMG Professor of Accountancy John and Mary Jo Boler School of Business John Carroll University.
Read to Learn Explain the purpose of accounting. Describe how property rights are measured. Define the three components of the accounting equation. Describe.
Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed.
Accounting and Financial Reporting Entrepreneurship & Small Business Management.
Accounting and Finance. Vocabulary Liabilities: O bligations of the firm to outsiders or claims against its assets by outsiders (debts of the firm). Assets:
Chapter 1 Accounting and the Business Environment
Financial Puzzle FINANCIAL STATEMENTS By PresenterMedia.com PresenterMedia.com.
COPYRIGHT © 2008 Thomson South-Western, a part of The Thomson Corporation. Thomson, the Star logo, and South-Western are trademarks used herein under license.
WRITTEN BY RUBY ANN SAWYER, BRANTLEY COUNTY MIDDLE SCHOOL Introduction to Accounting.
AC113 Accounting for Non-Accounting Majors Seminar: Unit 2
1 Introduction to Accounting and Business Financial Accounting 14e
Essential Standard 4.00 Understanding the role of finance in business. 1.
BUSINESS TRANSACTIONS AND THE ACCOUNTING EQUATION Chapter 3.
Chapter 1 – Part II Financial Statements. Balance sheet Economic resources and claims against those resources Assets – economic resources that are expected.
Chart of Accounts.
Describe various organizational forms and business decision makers. 1-1.
Accounting: Measuring how Efficiently and Effectively Resources are Creating Value and Profit © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.
CDA COLLEGE ACC101: INTRODUCTION TO ACCOUNTING Lecture 1 Lecture 1 Lecturer: Kleanthis Zisimos.
Accounting Process of measuring, interpreting, and communicating financial information to support internal and external business decision making. USERS.
Chapter 1 Accounting in Action. What is Accounting?  An information system that identifies, records and communicates economic events Identify: select.
©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Introduction to Accounting Trang. Definition of Accounting Accounting is a language of business. As the American Accounting Association: “ accounting.
Financial Analysis of a Business
Budget and Finance Part II BCS-BE-26: The student explains the process in developing a budget. BCS-BE-27: The student analyzes the financial statements.
Accounting And Finance © 2015 albert-learning.com ACCOUNTING & FINANCE.
FINANCIAL ACCOUNTING A USER PERSPECTIVE Hoskin Fizzell Davidson Second Canadian Edition.
Chapter 1 Test College Accounting. Question: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed.
©2013 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
Chapter 1 Accounting in Action. How Will Accounting Help Me? Used in Any Profession Used as a Career Choice Used for Personal Investments and Financial.
COPYRIGHT © 2009 South-Western/Cengage Learning SURVEY OF ACCOUNTING CHAPTER 1 CARL S. WARREN.
1-1 ©2006 Prentice Hall, Inc ©2006 Prentice Hall, Inc. LINK BETWEEN BUSINESS & ACCOUNTING (1 of 2)  Learning objectives Learning objectives  Definition.
Financial Statements A set of Financial Statements consist of four related accounting reports that summarizes the financial resources, obligations, profitability.
Finance Chapter 2 Financial statements. Financial statements & reports  Annual report—a report issued once a year by a corporation to its stockholders,
BASICS OF ACCOUNTING Its importance in actuarial world Baltic Actuarial Summer Days 2008, Estonia Kristīne Lomanovska, Inga Helmane.
McGraw-Hill/Irwin Chapter 1 The Nature and Purpose of Accounting Copyright © The McGraw-Hill Companies. All Rights Reserved.
1 Chapter 1 The Link Between Business and Accounting.
Understanding Accounting and Financial Statements Chapter 15 Sections 1-5.
1.01 Generally Accepted Accounting Principles – Financial Statements
Financial Accounting Chapter 1
Power Notes Chapter 1 Introduction to Accounting and Business
PEMBELIAN Balance Sheet
INVENTORY (Pengelolaan Persediaan)
DECISION MAKING BY THE NUMBERS
1.01 Generally Accepted Accounting Principles – Financial Statements
BANKING (Penerimaan dan Pengeluaran Kas)
INVENTORY (Pengelolaan Persediaan)
BUSINESS HIGH SCHOOL-ACCOUNTING I
Point 6 Financial Statements
Presentation transcript:

Accounting: Decision Making by the Numbers 2

3

4

5

Accounting: Who Needs It? 6 ManagersStockholders EmployeesCreditors What other groups would be interested in accounting information?

Accounting: Who does it? What Accountants Do: Public Accountants Forensic Accountants Management Accountants Internal Auditors Government Accountants Accountants require expertise Certified Public Accountant (CPA) Certification 150-semester hours of college Rigorous Exam Direct Work Experience in accounting Certified Management Accountant (CMA) Certified Fraud Examiners 7 ©Digital Vision/Jupiterimages © The Studio Dog/Photodisc/Getty Images

Role of the Financial Standards Accounting Board 8 Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board (FASB) Goals / purpose

Financial Statements  Balance Sheet  Income Statement  Statement of Cash Flows 9

The Balance Sheet: What We Own and How We Got It 10 Assets = Liabilities + Owner’s Equity Owner’s Equity – the claims owners have against their firm’s assets Balance Sheet – summarizes a firm’s financial position at a specific point in time Assets – things of value that the firm owns Liabilities – indicates what the firm owes to non-owners

The Balance Sheet for Bigbux 11

The Income Statement: So, How Did We Do? 12 Revenue – Expenses = Net Income Net Income – the profit or loss the firm earns Income Statement – summarizes a firm’s operations over a given period of time in terms of profit and loss Revenue– the increase in the amount of assets the firm earns Expenses – the cash the firm spends or other assets it uses to generate revenue

Income Statement for Bigbux 13

Statement of Cash Flows: Show Me the Money 14 Cash flowing into and out of the firm Operations Investing Financing Increases and decreases Total amount of cash on hand Stakeholders want to know if there is adequate cash to pay workers, creditors, suppliers and IRS.

Bigbux’s Statement of Cash Flows 15

Groupon’s External Auditor’s Opinion 16

Cash Budget for Oze-Moore 17

18 Accounts Receivable Accounts Payable

Looking Back 19

20

21

22