Accounting Chapter 1
Nature of Accounting
Accounting Cycle
Categories of Accounting Work
Miscellaneous Activities
An example is if someone abruptly decides to quit or if certain people like
These occur randomly and cannot usually be predicted beforehand
Periodic Accounting Activities
An example of this would be sales tax
These activities occur at regular intervals of time like every 2 weeks or every month
Routine Daily Work
Some examples are processing the bill, preparing cheques, and more
These activities occur very often
Who is Accounting useful to
Unions
They use accounting information to make negotiations with the business to allow for members of the union to have higher pay or better benefits
Employees
They use accounting information in order to make sure they go to a company that won't be going bankrupt soon
Creditors
They use accounting information to decide if they should give a loan to a certain person and if that person would give it back
Investors
They use accounting information to see how well the business is running currently and if the company may become amazing in the future
Managers and Buisness owners
They use accounting information in order to make better decision that can greatly affect the business
Why Study Accounting
Owning your own Business
Accounting allows owners of small businesses to make good decisions that are based off the financial information of the business
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
This is a dream many people have
Accounting in Daily Life
Knowledge of accounting allow you to better handle things regarding your personal business like income statements, budgets, and even more
Knowledge of accounting is very useful in the real world
Accounting on the job
A large number of jobs require office and accounting skills
Accounting is very helpful in a job in business
Roles in Accounting
Auditor
Their job is to examine the book records and perform some tests and procedures to make sure it is running fine
Accountant
they interpret the data that the accounting system makes
They also make sure the accounting standards are completed
They make strategies to make sure correct data is being inputted into the accounting system
They're responsible for making sure the whole accounting system works
Accounting Clerk/Bookkeeper
Some of their jobs include ensuring transactions are recorded properly, making calculation for the payroll and even more
Their job often requires them to do routine activities which is also called bookkeeping
Characteristics of Businesses
Forms of Business ownership
Corporation
A business owned by the shareholders
Partnership
A business that two or more people owns
Sole Proprietorship
Only one person owns the buisness
Type of Buisnesses
Non-Profit Organization
Any money made in a nonprofit is used to help the organization and create more projects that could help the community
They are not focused on makinga profit from this business
They try to help the community
Producing Business
The raw materials may also be bought by a manufacturing company to make products
They produce the raw materials like milk, metals and even more
The Manufacturing Business
Real life examples of these businesses are Ford and Microsoft and more
Use the raw materials from producing businesses and manufactures them into another product
The Merchandising Business
Examples can be things like clothes store, supermarkets etc
Buys products from manufacturing businesses and resells them at higher prices
The Service Business
Some examples include car repair shops or healthcare
They do not make or sell products
They sell a service to the public
