Accounting Chapter 1

Type of Buisnesses

They sell a service to the public

They do not make or sell products

Some examples include car repair shops or healthcare

Buys products from manufacturing businesses and resells them at higher prices

Examples can be things like clothes store, supermarkets etc

Use the raw materials from producing businesses and manufactures them into another product

Real life examples of these businesses are Ford and Microsoft and more

They produce the raw materials like milk, metals and even more

The raw materials may also be bought by a manufacturing company to make products

They try to help the community

They are not focused on makinga profit from this business

Any money made in a nonprofit is used to help the organization and create more projects that could help the community

Forms of Business ownership

Only one person owns the buisness

A business that two or more people owns

A business owned by the shareholders

Their job often requires them to do routine activities which is also called bookkeeping

Some of their jobs include ensuring transactions are recorded properly, making calculation for the payroll and even more

They're responsible for making sure the whole accounting system works

They make strategies to make sure correct data is being inputted into the accounting system

They also make sure the accounting standards are completed

they interpret the data that the accounting system makes

Their job is to examine the book records and perform some tests and procedures to make sure it is running fine

Accounting is very helpful in a job in business

A large number of jobs require office and accounting skills

Knowledge of accounting is very useful in the real world

Knowledge of accounting allow you to better handle things regarding your personal business like income statements, budgets, and even more

This is a dream many people have

Some accounting related tasks that you may have to complete include: banking, keeping track of the amounts owed by customers, keeping track of the amount owed to suppliers, keeping accounting records of the government, making income statements, creating a payroll

Accounting allows owners of small businesses to make good decisions that are based off the financial information of the business

Managers and Buisness owners

They use accounting information in order to make better decision that can greatly affect the business

They use accounting information to see how well the business is running currently and if the company may become amazing in the future

They use accounting information to decide if they should give a loan to a certain person and if that person would give it back

They use accounting information in order to make sure they go to a company that won't be going bankrupt soon

They use accounting information to make negotiations with the business to allow for members of the union to have higher pay or better benefits

Categories of Accounting Work

These activities occur very often

Some examples are processing the bill, preparing cheques, and more

These activities occur at regular intervals of time like every 2 weeks or every month

An example of this would be sales tax

These occur randomly and cannot usually be predicted beforehand

An example is if someone abruptly decides to quit or if certain people like