1.1: The Accounting Environment
Read this chapter, which discusses how to define accounting and what the result of accounting (accounting information) is used for. It also considers potential employment opportunities associated with accounting for business and the difference between financial and managerial accounting.
This chapter also introduces the Generally Accepted Accounting Principles, or GAAP, and the various organizations that have a significant impact on how GAAP is administered, including the Securities and Exchange Commission (SEC), the Financial Accounting Standards Board (FASB), and the American Accounting Association (AAA).
It is essential to be ethical in applying accounting principles and managing your reputation. Be mindful of this, especially if you are considering a career in accounting.This chapter introduces the principles of managerial accounting and points out the differences between managerial accounting and financial accounting. Outside parties do not use managerial accounting; it is primarily used internally by management to make decisions that affect the organization's efficiency.
In this article, you will learn about the rules that govern accounting. GAAP sets the rules that accounts follow when making journal entries and standardizes accounting so outside parties can make comparisons between companies. Investors, creditors, even employees count on the consistency of financial reporting to evaluate operations.
This video introduces basic accounting principles. Pay attention to the various accounting entries and how transactions affect businesses.