Chapter 16

Chapter 16 - CONTEMPORARYBUSINESSChapterOutline CHAPTER16:

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CONTEMPORARY BUSINESS Chapter Outline  CHAPTER 16:   UNDERSTANDING ACCOUNTING  AND FINANCIAL STATEMENTS Opening Chapter Page Accounting is the process of measuring, interpreting, and communicating financial information.  Why? To allow people both inside and outside an organization to make solid, informed decisions.  This “language of business” is the subject of Chapter 16.   Who uses accounting information? The chapter begins to answer that important question as more  companies go public, expand around the globe, and even open their books to employees.   How do all those number crunchers work together? The chapter goes on to discuss business  activities that involve accounting statements:  financing, investing, and operations.   What about the mechanics? What day-to-day operations are involved in tracking down all those  numbers? It explains the accounting process and then discusses the development of accounting  statements from information about financial transactions.   How do the resulting decisions come about? The chapter presents the methods of interpreting  these statements and examines the role of budgeting in the planning and control of a business. Learning Goal 1:  Explain the functions of accounting and its importance to the firm’s  management, investors, creditors, and government agencies.  Key Terms     accounting / accountants / open book management / Internal Revenue Service (IRS)  Class Notes / Lecture Outline Chapter Opening Opening vignette – “Who  Is Grant Thornton?”   Talk  about what it might be like  to act as a “personal  accountant” for large  corporations, and smaller  entrepreneurial firms.  What different approaches  107
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might you take, based on  the size and nature of the  business, the industry,  etc.?   Basic PowerPoint 1 Expanded PowerPoint 1 1. What is accounting? a. Accounting professionals prepare the financial information  that organizations present in their annual reports b. Accounting      is the process of measuring, interpreting, and  communicating financial information so that people inside  and outside a firm can make informed decisions c. Accountants      gather, record, report, and interpret financial  information to describe a firm’s status and operations and to  aid in decision making Case 16.1 “Accounting  Gets More Family  Friendly.”  Discuss how  accounting firms may  prepare for employee  needs, considering the  recent influx of female  accountants.  How does  this profession lend itself to  smaller, family-oriented  firms?  What are the  drawbacks?  How can  women—and men—who  are interested in this work  still manage to find 
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This note was uploaded on 11/26/2011 for the course BUSN 1140 taught by Professor Skogstrom during the Fall '10 term at MCTC.

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Chapter 16 - CONTEMPORARYBUSINESSChapterOutline CHAPTER16:

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