Chapter 01 - Introducing Accounting in Business
Importance of Accounting
Accounting is an information and measurement system that identifies,
records and communicates relevant, reliable, and comparable
information about an organiz
CH 1: ACCOUNTING IN BUSINESS
I. Accounting definition and purpose
An information and measurement system that identifies, records, and communicates
relevant, reliable and comparable information about an organizations business activities.
The following costs result from the production of 24,000 DVD sets manufactured by Astra Company for
the year ended December 31, 2008. The DVD sets will sell for $30 each. The company has a 30%
income tax rate.
IN ORDER FOR A CORPORATION to meet effectively its obligations to
shareholders, employees, and society, its top managers must develop a
relationship between the organization and employees that will fulﬁll
the continually changing ne