Chapter 1 - PART ONE 1 Introduction to Financial Accounting...

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PART ONE 1 Introduction to Financial Accounting Chapter 1 gets you started. It begins with an overview of the whole book and then introduces the people who prepare and use financial accounting’s information and the way accounting measures an enterprise’s performance. The chapter also introduces financial accounting’s underlying system and ideas about the kinds of analysis that are central to using financial statements and to accountants’ value in society. C1 Introduction: Linking Financial Accounting’s Production and Uses NEL
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CHAPTER ONE 1 Book Overview: Financial Accounting’s Illumination of the World Introduction: Linking Financial Accounting’s Production and Uses 1.1 NEL I n an introductory course, learning termi- nology is important. To help you with that, this book has a Glossary of Terms at the back. Any term printed in light brown, such as financial accounting , is included in the glossary. Marginal comments, such as the one on the left, highlight important ideas, and at the end of each chapter there is a list of new terms from that chapter. If you’re not sure what a term means, look it up right away. Financial accounting’s reports tell a financial story about the organization. FYI Welcome! Welcome to this exploration of an interesting and thought- provoking subject: financial accounting, which provides informa- tion about companies and other enterprises. To illustrate the role accounting plays in lighting the way for investors, managers, and other decision makers, or should play if it is done properly, we will use the Canadian company Enbridge Inc.’s financial statements throughout the book. Before we move to Chapter 1, this book overview will explain how Enbridge illustrates this concept and explain how the book is organized.
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4 P ART O NE I NTRODUCTION TO F INANCIAL A CCOUNTING Enbridge Inc. and Financial Accounting’s Illumination Let’s start by thinking about the Canadian company Enbridge Inc. ( www.enbridge.com ). This company, which began as an inter- provincial oil pipeline operator, now runs businesses all over the world. It still has its oil pipeline business, but it also owns natural gas pipelines, and engages in gas distribution, wind power, and many other energy activities. Its brands and business interests include Enbridge Pipelines in Western Canada and the United States, Enbridge Gas Distribution and Gaz Métropolitain in Central Canada, Enbridge Gas New Brunswick in Eastern Canada, Enbridge Energy Partners’ natural gas pipelines in the United States, Inuvik Gas in the North, Sunbridge Wind Power in Saskatchewan, and numerous energy development projects in Canada, the United States, South America, and elsewhere. There are ten components that make up financial accounting: seven concepts and three foundations. Let’s see how they apply to Enbridge, beginning with the light that financial accounting is designed to produce.
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This note was uploaded on 10/22/2009 for the course ACCOUNTING 30516 taught by Professor Whoever during the Spring '09 term at American Academy of Art.

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Chapter 1 - PART ONE 1 Introduction to Financial Accounting...

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