Upload
lena
View
54
Download
0
Tags:
Embed Size (px)
DESCRIPTION
In Alberta, you cannot take a picture of a man with a wooden leg. Why not?. Accounting Principles 30S. An Introduction. Why Study Accounting?. Accounting on the Job Finding employment in a business is easier if you have a background in accounting Accounting in Daily Life - PowerPoint PPT Presentation
Citation preview
In Alberta, you cannot take a
picture of a man with a wooden
leg. Why not?
Accounting Principles 30SAn Introduction
Why Study Accounting?
• Accounting on the Job– Finding employment in a
business is easier if you have a background in accounting
• Accounting in Daily Life– Accounting will help you to
better handle your personal business affairs such as preparing a personal budget, keeping personal financial records, and preparing your income tax return
• Accounting for Your Own Business– If a business is to be successful, the
owner must be able to make sound management decisions based on good financial records
• Accounting as a Profession– Chartered Accountant (CA)– Certified General Accountant (CGA)– Certified Management Accountant
(CMA)
What is Accounting?
• The purpose of accounting is to provide financial information for decision making– Is the business earning enough profit?– How much does the business owe?– Is this a good investment opportunity?
• Every accounting system must:– Record day-to-day financial activities of the
business (e.g. all money coming in and out)– Summarize and report information in financial
statements for analysis and decision making
What is a Business?
• A business involves the manufacture and/or sale of goods or services in order to earn profit
Four Types of Business
1. Service Business– Sells a service to the
public (does not sell a product)
– e.g. Hair Salon2. Merchandise Business
– Buys goods and resells them at a higher price for profit
– e.g. Supermarket
3. Manufacturing Business– The manufacturing business
buys raw materials, converts them into a new product, and sells these products to earn a profit
– e.g. Paper Mill4. Non-Profit Organization
– Carries on activities to meet social needs and not for a financial profit
– e.g. Cancer Society
Accounting Cycle