ACG 2021 Chapter 1: Chapter1

4 Pages
Unlock Document

University of Central Florida
Accounting General
ACG 2021
Christina Parker

Chapter 1: Introduction to Accounting and Business Nature of Business and Accounting Business an organization in which basic resources (inputs) are assembled and processed to provide goods or services (outputs) to customers Objective of most businesses is to earn profit Profit the difference between the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services Types of Businesses Service businesses provide services rather than products to customers Ex: Delta Airlines (transportation), Walt Disney World (entertainment) Merchandising businesses sell products they purchase from other businesses to customers Ex: Walmart, Amazon Manufacturing businesses change basic inputs into products that are sold to customers Ex: Ford (cars, trucks, vans), Dell (computers) Role of Accounting in Business Provide information for managers to use in operating the business Accounting an information system that provides reports to users about the economic activities and condition of a business The means by which businesses financial information is communicated to users 1. Identify users 2. Assess users information needs 3. Design the accounting information system to meet users needs 4. Record economic data about business activities and events 5. Prepare accounting reports for users Internal users: managers employees; directly involved in managing and operating the business Managerial accounting is used for internal users Managerial accounting provide relevant and timely information for managers and employees decisionmaking needs External users: investors, creditors, customers, government; not directly involved in managing and operating the business Financial accounting is used for external users Generalpurpose financial statements type of financial accounting report that is distributed to external Role of Ethics in Accounting and Business Ethics moral principles that guide the conduct of individuals Opportunities for Accountants Public accounting an accountant may practice as an individual or as a member of a public accounting firm Certified public accountants (CPA) typically perform general accounting, audit, or tax services General Accepted Accounting Principles Generally accepted accounting principles (GAAP)
More Less

Related notes for ACG 2021

Log In


Don't have an account?

Join OneClass

Access over 10 million pages of study
documents for 1.3 million courses.

Sign up

Join to view


By registering, I agree to the Terms and Privacy Policies
Already have an account?
Just a few more details

So we can recommend you notes for your school.

Reset Password

Please enter below the email address you registered with and we will send you a link to reset your password.

Add your courses

Get notes from the top students in your class.