Ch 1 -Eye Openers (23rd) - CHAPTER 1 INTRODUCTION TO...

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CHAPTER 1 INTRODUCTION TO ACCOUNTING AND BUSINESS EYE OPENERS 1. The objective of most businesses is to earn a profit. Profit is the difference between the amounts re- ceived from customers for goods or services provided and the amounts paid for the inputs used to provide those goods or services. 2. A manufacturing business changes basic inputs into products that are then sold to customers. A ser- vice business provides services rather than products to customers. A restaurant such as Applebee’s has characteristics of both a manufacturing and a service business in that Applebee’s takes raw inputs such as cheese, fish, and beef and processes them into products for consumption by its customers. At the same time, Applebee’s provides services of waiting on its customers as they dine. 3. Some users of accounting information include owners, managers, employees, customers, creditors, and the government. 4.
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This note was uploaded on 10/22/2010 for the course BUSINESS BAIU09 taught by Professor Mr.ken during the Spring '10 term at American InterContinental University Dunwoody.

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