Accounting 1-4 Chapter

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chapter 1 INTRODUCTION TO FINANCIAL STATEMENTS ● the navigator ● ● ● ● ✓ Scan Study Objectives Read Feature Story Scan Preview Read Text and Answer Do it! p. 5 p. 11 p. 18 p. 20 Work Using the Decision Toolkit Review Summary of Study Objectives Work Comprehensive Do it! p. 23 Answer Self-Test Questions Complete Assignments Go to WileyPLUS for practice and tutorials Read A Look at IFRS p. 42 study objectives After studying this chapter, you should be able to: 1 Describe the primary forms of business organization. 2 Identify the users and uses of accounting information. 3 Explain the three principal types of business activity. 4 Describe the content and purpose of each of the financial statements. 5 Explain the meaning of…show more content…
We recommend that you take a few minutes today away from your studies to determine your own results. KN O W I N G TH E NUMBERS Source: Tootsie Roll information adapted from INSIDE CHAPTER 1 . . . ● ● ● ● The Scoop on Accounting (p. 6) Spinning the Career Wheel (p. 7) The Numbers Behind Not-for-Profit Organizations (p. 8) Rocking the Bottom Line (p. 15) 3 preview of chapter 1 How do you start a business? How do you determine whether your business is making or losing money? How should you finance expansion—should you borrow, should you issue stock, should you use your own funds? How do you convince lenders to lend you money or investors to buy your stock? Success in business requires making countless decisions, and decisions require financial information. The purpose of this chapter is to show you what role accounting plays in providing financial information. The content and organization of the chapter are as follows. Introduction to Financial Statements Forms of Business Organization • Sole proprietorship • Partnership • Corporation Users and Uses of Financial Information • Internal users • External users • Ethics in financial reporting Business Activities • Financing • Investing • Operating • • • • • Communicating with Users Income statement Retained earnings statement Balance sheet Statement of cash flows Interrelationships of statements • Other elements of an annual report Forms of
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