ACC 100 Chapter 1: Chapter 1
Document Summary
Chapter 1 accounting communication an introduction: organization is a collection of individuals pursuing the same goal or objective. Non-business entities: organized for a purpose other than to earn an income, such as hospital, government, local school. Investing activities: asset is a future economic benefit to an organization, for example purchasing land, buildings. Operating activities: revenue is the inflow of assets resulting from the sale of products and services, expense is outflows of assets resulting from the sale of goods and services. Internal users: management accounting is the branch of accounting concerned with providing management with information to facilitate planning and control. External users: financial accounting is the branch of accounting concerned with the preparation of financial statements for outsider use. The accounting profession: the controller is the chief accounting officer for a company, the treasurer is the officer responsible in an organization for the safeguarding and efficient use of company"s liquid assets such as cash.
