Chapter 01

Chapter 01 - INTRODUCTION TO ACCOUNTING Instructor: Liu...

Info iconThis preview shows pages 1–13. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: INTRODUCTION TO ACCOUNTING Instructor: Liu ZHENG WebCT course id = "BUSI1002DRZHENG" ACCOUNTING IN BUSINESS Chapter 1 McGraw-Hill/Irwin Slide 3 McGraw-Hill/Irwin Slide 3 WHAT IS ACCOUNTING Language of Business McGraw-Hill/Irwin Slide 4 McGraw-Hill/Irwin Slide 4 USERS OF ACCOUNTING INFORMATION McGraw-Hill/Irwin Slide 5 McGraw-Hill/Irwin Slide 5 OPPORTUNITIES IN ACCOUNTING Four broad areas of opportunities financial managerial taxation, and accounting related. McGraw-Hill/Irwin Slide 6 McGraw-Hill/Irwin Slide 6 TYPES OF ACCOUNTING INFORMATION Financial Accounting Provides information primarily to people outside the company (e.g., investors and creditors), through general-purpose financial statements . Management Accounting Provide information to people inside the company (e.g., managers) Tax Accounting Provides information to the tax authorities McGraw-Hill/Irwin Slide 7 McGraw-Hill/Irwin Slide 7 7 OBJECTIVES OF FINANCIAL ACCOUNTING Company Outsiders- Investors- suppliers- Employees- . Resources Today Resources Tomorrow Information McGraw-Hill/Irwin Slide 8 McGraw-Hill/Irwin Slide 8 SOURCE OF INFORMATION Corporate disclosures (e.g., financial statements , regulatory filings, press releases) Information inferred from actions (e.g., capital structure decisions, dividend payouts, share buy-backs or acquisition decisions); Information generated by third parties (e.g., financial research analysts, rating agencies, or the media); Information generated by stakeholders on private account but then potentially publicly revealed; Information inferred from any of the above sources of information for a competitor or another related company and macro-data such as GDP, interest rates, inflation, and industry data. McGraw-Hill/Irwin Slide 9 McGraw-Hill/Irwin Slide 9 Beliefs that distinguish right from wrong Accepted standards of good and bad behavior ETHICS - A KEY CONCEPT McGraw-Hill/Irwin Slide 10 McGraw-Hill/Irwin Slide 10 WHO ARE THEY? McGraw-Hill/Irwin Slide 11 McGraw-Hill/Irwin Slide 11 ENRON SCANDAL Enron Corporation was an American engergy company based in Houston, Texas. Before its bankruptcy in late 2001, Enron employed approximately 22,000 people and Forturn named Enron "America's Most Innovative Company" for six consecutive years. After a series of revelations involving irregular accounting procedures conducted throughout the 1990s, Enron shares dropped from over US$90.00 to less than 50. Enron filed for bankruptcy on December 2, 2001. In addition, the scandal caused the dissolution of Arthur Andersen. McGraw-Hill/Irwin Slide 12 McGraw-Hill/Irwin Slide 12 WORLDCOM SCANDAL WorldCom began in 1983 as a small company. Within 15 years it became one of the largest telecommunication company in the world (20 million customers, 55,000 employees) In late June 2002, WorldCom stunned investors by announcing that it intended to restate its financial statements for 2001 and...
View Full Document

Page1 / 42

Chapter 01 - INTRODUCTION TO ACCOUNTING Instructor: Liu...

This preview shows document pages 1 - 13. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online