Chapter01 UML 2007

Chapter01 UML 2007 - Chapter 1 Introduction: Reporting...

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Unformatted text preview: Chapter 1 Introduction: Reporting About Resources In this chapter you will begin learning about the purpose and process of accounting. You will see that the information produced by a company's accounting system is aimed at answering specific questions about the company's resources. Information for answering the questions is often provided in the form of financial statements. Goals A goal is something to work toward. It is something you try to achieve. For example, right now you may be trying to prepare yourself to earn a high grade in this accounting course. On the other hand, your goal for the next few minutes might simply be to stay awake until it's time to go to dinner! People have numerous goals. Many people strive to develop and maintain happy families. Some people work to get the highest paying job possible. Some people try to be in perfect health, or at least in great physical shape. Still other people have earning a high-quality education as their goal. Similar to people, companies have goals. Health centers and medical practices have as their goal the providing of quality, affordable health care. Broadway theaters strive to provide diverse, live entertainment. Clothing stores try to sell blouses, slacks, shirts, pants, and sweaters to customers. Automobile companies attempt to manufacture and sell cars. For an example of one company's goals, see the following brief discussion of AT&T Inc. AT&T Inc. In its 2006 annual report to owners, AT&T listed the following goals. Build on our success in wireless by continuing to add subscribers, generating higher data revenues and boosting margins. Deliver the value of the BellSouth acquisition. Strengthen our ability to compete in the video market as we scale our new video services. Grow our enterprise business. Continue to build AT&T as the brand that our current and future customers rely on to meet all of their communications and entertainment needs. Most important, well continue to work hard to deliver value to our stockholders. Goals and Resources How do people and companies achieve their goals? The obvious answer is through hard work. However, if hard work is the only requirement many more people and companies would be successful. Some of the most important requirements for companies and people to achieve their goals are resources. Resources are the things you have to work with. Personally, your resources consist of things like cash, textbooks, pencils, notebooks, clothes, car, stereo, and CDs. A company's resources include cash, land, buildings, and machines. Resources and Personal Goals Why do people want resources? If cash is a resource in which you are interested, consider what you can do with more of it....
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This note was uploaded on 10/09/2011 for the course ACCT 60.201 taught by Professor Monty during the Spring '11 term at UMass Lowell.

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Chapter01 UML 2007 - Chapter 1 Introduction: Reporting...

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