Professional Documents
Culture Documents
Sixteenth Edition
Williams
Haka
Bettner
Carcello
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA
McGraw-Hill/Irwin Copyright 2012 The McGraw-Hill Companies, Inc.
Accounting
Information for Decision Making
Chapter 1
PowerPoint Authors: Susan Coomer Galbreath, Ph.D., CPA Charles W. Caldwell, D.B.A., CMA Jon A. Booker, Ph.D., CPA, CIA Cynthia J. Rooney, Ph.D., CPA
McGraw-Hill/Irwin
Economic Activities
Accounting links decision makers with economic activities and with the results of their decisions.
Accounting Information
Actions (decisions)
Decision Makers
Management
1-4
Accounting Systems
An accounting system consists of the personnel, procedures, technology, and records used by an organization to develop accounting information and to communicate this information to decision makers.
1-5
Information System
Information Users Investors Creditors Managers Owners Customers Employees Regulators -SEC -IRS -FTC
Decisions Supported Performance evaluations Stock investments Tax strategies Labor relations Resource allocations Lending decisions Borrowing
1-6
Although much accounting information clearly is essential to business operations, management still has many choices as to the types and amount of accounting information to be developed.
1-7
1-10
Provide information useful in assessing amount, timing and uncertainty of future cash flows.
Historical in Nature
1-13
Line supervisors
1-14
Owners
Board of Directors
V.P Ethics
Plant Managers
Plant Managers
Controller
Treasurer
Plant Accountants
Plant Accountants
1-15
1-16
1-17
Institutional Features
Generally Accepted Accounting Principles (GAAP) Financial Accounting Standards Board International Accounting Standards Board Securities and Exchange Commission Public Company Accounting Oversight Board Audits of Financial Statements Legislation
1-18
Professional Organizations
American Institute of Certified Public Accountants Institute of Management Accountants Institute of Internal Auditors American Accounting Association Committee of Sponsoring Organizations of the Treadway Commission (COSO)
1-19
Careers in Accounting
Public Accounting Management Accounting Governmental Accounting Accounting Education
1-21
Professional accountants are involved more with the interpretation and use of accounting information than with its actual preparation.
1-22
1-23
End of Chapter 1
1-25