LEARNING OBJECTIVES chpt 14 - RUNNING HEAD CHAPTER 14 ACCOUNTING AND FINANCIAL STATEMENT LEARNING OBJECTIVES 14-1 Define accounting and describe the

LEARNING OBJECTIVES chpt 14 - RUNNING HEAD CHAPTER 14...

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RUNNING HEAD: CHAPTER 14 ACCOUNTING AND FINANCIAL STATEMENT 1 LEARNING OBJECTIVES 14-1.) Define accounting, and describe the different uses of accounting information (pgs. 267- 271). Accounting is the language businesses and other organizations use to record, measure, and interpret financial transactions. Financial statements are used internally to judge and control an organization’s performance and to plan and direct its future activities and measure goal attainment. External organizations such as lenders, governments, customers, suppliers, and the internal revenue service are major consumers of the information generated by the accounting process. 14-2.) Demonstrate the accounting process (271-275). Assets are an organization’s economic resources; liabilities are debts the organization owes to others; owners’ equity is the difference between the value of an organization’s assets and liabilities. The principle can be expressed as the accounting equation: assets= liabilities + owners’ equity.

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