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Larson-Wild-Chiappetta: Fundamental Accounting Principles, Seventeenth Edition 1. Accounting in Business Text The McGraw-Hill Companies, 2004 A Look at This Chapter Accounting plays a crucial role in the infor- mation age. In this chapter, we discuss the importance of accounting to different types of organizations and describe its many users and uses.We explain that ethics are crucial to accounting.We also describe business transactions and how they are reflected in financial statements. A Look Ahead Chapter 2 further describes and analyzes business transactions.We explain the analy- sis and recording of transactions, the ledger and trial balance, and the double-entry sys- tem. More generally, Chapters 2 through 4 focus on accounting and analysis, and they illustrate (via the accounting cycle) how financial statements reflect business activities. Accounting in Business I love chocolate, and so Im having fun making money Elise Macmillan (Evan Macmillan on right) 1 Larson-Wild-Chiappetta: Fundamental Accounting Principles, Seventeenth Edition 1. Accounting in Business Text The McGraw-Hill Companies, 2004 Learning Objectives CAP Decision Feature Conceptual Explain the purpose and importance of accounting in the information age. (p. 4) Identify users and uses of accounting. (p. 5) Identify opportunities in accounting and related fields. (p. 6) Explain why ethics are crucial to accounting. (p. 8) Explain the meaning of generally accepted accounting principles, and define and apply several key principles of accounting. (p. 9) Analytical Define and interpret the accounting equation and each of its components. (p. 12) Analyze business transactions using the accounting equation. (p. 13) Compute and interpret return on assets. (p. 20) Procedural Identify and prepare basic financial statements and explain how they interrelate. (p. 17) C1 C2 C3 C4 C5 A1 A2 A3 P1 Sweet Taste of Success DENVERElise and Evan Macmillansister and brother entrepreneursaim to satisfy.Our whole business is about customers, says Elise.These teenagers head The Chocolate Farm (TheChocolateF arm.com ), which specializes in making chocolates and in helping their customers make them. We thought our business was going to be a one-day thing, says Elise,but it turned into a real business. This meant Elise and Evan had to deal with issues such as organization form, accounting and in- formation systems, transaction analysis, and financial reports.Adds Elise,Im kept busy with the companys future plans and new prod- uct ideas and everything else that there is to a company. Special attention is directed at accounting information; because without income,The Chocolate Farm would be knee-deep in cocoa.... View Full Document

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