1. The GREAT Academy Marketing and Entrepreneurship Lab Chenyu Liu
Financial Accounting
The GREAT Academy
Marketing and Entrepreneurship Lab
Chenyu Liu

2. ACCOUNTING: Information for Decision Making2

3. The accounting process
Accounting “links” decision makers with economic activities ¾ and with the results of their decisions.
Accounting
information
Economic activities
Actions (decisions)
Decision makers 3

4. Types of Accounting Information
Financial
Tax
Managerial 3

5. Basic Functions of an Accounting System
Interpret and record business transactions.
Payment
Car

6. Basic Functions of an Accounting System
Interpret and record business transactions.
Classify similar transactions into useful reports.
Summarize and communicate information to decision makers.

7. Objectives of External Financial Reporting
Income Statement
Balance Sheet
Statement of Cash Flows
The primary financial statements.

8. Internal Users of Accounting Information
Board of Directors
Chief Executive Officer
Chief Financial Officer
Vice Presidents
Business Unit Managers
Plant Managers
Store Managers
Line Supervisors 3

9. 3

11. Introduction to Financial Statements
Income Statement
Balance Sheet
Statement of Cash Flows
Three primary financial statements.
We will use a corporation to describe these statements.

12. Introduction to Financial Statements
Income Statement
Balance Sheet
Statement of Cash Flows
Describes where the enterprise stands at a specific date.

13. Introduction to Financial Statements
Income Statement
Balance Sheet
Statement of Cash Flows
Depicts the revenue and expenses for a designated period of time.

14. Introduction to Financial Statements
Income Statement
Balance Sheet
Statement of Cash Flows
Depicts the ways cash has changed during a designated period of time.