Popular in Course
Popular in Accounting
verified elite notetaker
This 25 page Class Notes was uploaded by Tyrell Halvorson on Wednesday September 23, 2015. The Class Notes belongs to ACCT115 at Drexel University taught by GordianNdubizu in Fall. Since its upload, it has received 40 views. For similar materials see /class/212546/acct115-drexel-university in Accounting at Drexel University.
Reviews for FinancialAccountingFoundations
Report this Material
What is Karma?
Karma is the currency of StudySoup.
Date Created: 09/23/15
1 VAccounting Information for xvj EDecision Making fix 7 Fifteenth Edition Williams Haka Bettner Carcello i PowerPointAuthors Susan Coomer Galbreath PhD CPA Charles W Caldwell DBA CMA Jon A Booker PhD CPA CIA Cynthia J Rooney PhD CPA McGraWgtHilU Copyright 2012 The McGraWrHle Companies Inc Accounting We Information for Decision Making Chapter 1 PowerPointAuthors Susan Coomer Galbreath PhD CPA Charles W Caldwell DBA CMA Jon A Booker PhD CPA CIA Cynthia J Rooney PhD CPA The Accounting Process Accounting links decision makers witheconomic Accounting actIVItIes and Information with the results of their decisions Economic Activities Reported A Decision f c ons Makers decisions 13 decisions Types of Accounting Information Accounting Systems Information Financial Decisions Users Information Supported nvestors Provided Performance Creditors oProfitabi ty evaluations Managers Financial Stock Owners 4 position investments Customers cash ows Tax strategies Empoyees Labor relations Reguators Resource SEC allocations RS oLending FTC decisions Borrowing Determining Information Needs quot7 Internal Revenue Setvme Unitde States Dcparmcmt of the Transmit Althouigh much accou nting intermation clearly is essential to business operations m anaggze ment still has many choices as to the and amount of accounting 39i39nifosrmati on be d evellored Basic Functions of an Accounting System 0 Interpret 9 Classify and record similar business transactions transactions into useful reports 9 Summarize and communicate information to decision makers Components of Internal Control Control Environment Risk Assessment Control Activities Information and Communication Monitoring External Users of Accounting Information Owners Creditors Potential investors Labor unions Governmental agencies Suppliers C ustomers Trade associations General public L fmummnmm v Objectives of External Financial 3 iiiiij imiin 77 f V rid v rs Y r quotquotVgt F I quotQW 9gtm i a H a 5 Via In v Dues 3 rm 22w r w and ima imggjgg um uswmwas an 139 s ii i m 3 iii 7 Provide general information useful in making investment and credit decisions Objectives of External Financial Reporting The primary nancial statements Characteristics of Externally Reported Information A Means to an End Usefulness Enhanced via Explanation Broader than Financial Statements k 1 l 6 quot quotil l r Based on General 5quot Purpose Assumption Historical in Nature Results from lnexact and Approximate Measures Users of Internal Accounting Information 0 Board of directors 0 Chief executive of cer CEO 0 Chief nancial of cer CFO Vice presidents 0 Business unit managers 0 Plant managers 0 Store managers 0 Line supervisors Owners Board of Directors l Chief Executive Typical Simple Organization Chart Officer CEO I 439 4 VI 139 4 Business V P V P Chief Ethics Unit Human Information Financial 39 39 Managers Resources Services OfficerCFO Plant Plant a l H I Managers Managers Controller Treasurer Plant Plant Accountants ACG ountants l Objectives of Management Accounting Information goals and To help achieve missions and reward decision makers To help evaluate l Characteristics of Management Accounting Information I Timeliness I Identify A Means to an Decision Maker End Oriented Toward I Future Efficiency and Measures of Effectiveness Institutional Features Professional Organizations 1 American Institute of Certified Public Accountants nstitute of Management Accountants nstitute of Internal Auditors American Accounting Association 0Committee of Sponsoring Organizations of the Treadway Commission COSO CompetenceJudgment and Ethical Behavior 7 Certified Public Accountant CPA Certified Management Accountant CMA Certified Internal Auditor CIA Ethical behavior is the cornerstone of the accoun ng profession Careers in Accounting o mb Amc mmi mg 39 ol 1mmmmiiAcgamwmi mg 33 oiz7mmm Amwmimg o gwwm mg E i1mlt g bi m1 What About Bookkeeping vii 39f f r VH EIICRMTJ jl v L HT 7 H9 K 7 7 rlmg7 i i 1 th w 1 739 39 39 A r 39 I V N c I g39 y 71 mum wmclm ML I C y V 39 399 I l m Not An Accounting Major 1 7 1 7 wr SH17M J U 1 an LLLHJ 4 V 739 Hlt ip 17 7 39M Mlzjlilli I Unfit AAl agitwg m Jug N T 1quot u 711739j 52 61131717 Jwilwima Mm quot39 39Ad quot 39 ffquot 2 39 7 f quot7 x if 7 Cirquot m p11 3quot will jj j yyarhljk jL gm whlvmLnjagzxwglw 1H H V quot3 7 E r quotf L ri39v39r lt 71 r quot3931 lt1 F39l 39x 39 5L HJVN 41quot W W 39 1WD x39i LHJLLLit WE 3 1 39ng quotif lt51 1 fdlj39 1quot J 7 Ethics Fraud amp Corporate Governance Corporate governance entails corporate structures and processes for overseeing the company s affairs to ensure that the company is being managed with the best interests of shareholders in mind Dennis Kozlowski the former CEO of Tyco was sentenced to 8 13 to 25 years in prison for his conviction for conspiracy securities fraud and falsifying records End of Chapter