Introduction to Financial Accounting Business 1A. “Those who recognize the value of accounting information and learn how to use it to make better decisions have a competitive advantage over those who don’t.” – Steve Albrecht. Today's Objectives. Define purpose of financial accounting - PowerPoint PPT Presentation
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“Those who recognize the value of accounting information and learn how to use it to make better decisions have a competitive advantage over those who don’t.”
Today's ObjectivesDefine purpose of financial accountingTopic organizationMajor student deliverables & expectationsStudent resources Learning the basics of the most popular business performance report in existence.
Accounting is “the language of business.”Financial Accounting is designed to provide
information to people who make decisions:Measures business activity in monetary termsProcesses the data into reportsCommunicates the results to decision makersDecisions are made, and the process repeats
1/3 of the class.Reporting core business activities – sales, etcReporting & safeguarding business possessionsReporting amounts that the business owesReporting owners’ equity & related transactionsReporting cash flowsReading the story You as the analyst
Homework – due on timeRead chapter & homework before lectureHomework is submitted onlinePractice Set links chapters 1 through 4QuizzesIn-class early in semester, must be here for the pointsMid terms and final exam1st the accounting cycle2nd covers the following 1/3 of the classFinal, covers last section of class and is comprehensiveAnalysis casesAnalysis of financial statements and decision makingTied to the topics of study at handIn class workOpportunities will arise for work time in class leading to direct points and/or participation points. Attendance is required to earn these points.
Using your bookUse it, a lotRead it before classLearning objectives, review before readingSummary problems, pause for reviewDemo Doc, detailed demonstrationsVocabulary, know all of itHomework: Short, Exercises, Problems, More
Businesses create wealth by selling goods & services to customers for more than the cost to provide those goods & services.
Buy ice cream sandwiches for 50¢, sell for $1.00 Hire a mechanic for $30/hour, bill at $90/hourHire programmers for $50/hour, and rake in $1.2Billion to advertise on your site.
Expenses: Resources ConsumedDecrease in equity that occurs from using assets or increasing liabilities in the course of delivering goods or services to customers
The cost of the merchandise that was soldStore or rent expenseSalary expenseAdvertising expenseUtilities expenseInterest expenseProperty tax expense
www.yahoo.com/financeShout out a company about which you careHelp read and analyze their income statementJudge a few companies based solely on their I.S.
Read all of chapter 1 before class. You review key terms. You familiarize yourself with the assignmentsLecture covers chapter 1 contentWe Review the income statement We hammer on the balance sheetWe work with profitability and financial standingAnother quiz likely