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Lecture Survey of Accounting (First edition): Chapter 1 – Kimmel, Weygandt
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Lecture Survey of Accounting (First edition): Chapter 1 – Kimmel, Weygandt
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Chapter 1 - Introduction to financial statements. This chapter’s objectives are to: Identify the forms of business organization and the uses of accounting information, explain the three principal types of business activity, describe the four financial statements and how they are prepared. | Introduction to Financial Statements 1 Kimmel ● Weygandt Survey of Accounting, First Edition CHAPTER OUTLINE Identify the forms of business organization and the uses of accounting information. 1 Explain the three principal types of business activity. 2 LEARNING OBJECTIVES Describe the four financial statements and how they are prepared. 3 LEARNING OBJECTIVE LO 1 FORMS OF BUSINESS ORGANIZATION Identify the forms of business organization and the uses of accounting information. 1 USERS AND USES OF FINANCIAL INFORMATION Internal Users Illustration 1-1 Questions that internal users ask LO 1 ACCOUNTING ACROSS THE ORGANIZATION Owning a Piece of the Bar The original Clif Bar® energy bar was created in 1990 after six months of experimentation by Gary Erickson and his mother in her kitchen. Today, the company has almost 300 employees and is considered one of the leading Landor’s Breakaway Brands®. One of Clif Bar & Company’s proudest moments was the creation of an employee stock ownership plan (ESOP) in 2010. This plan gives its employees 20% ownership of the company. The ESOP also resulted in Clif Bar enacting an open-book management program, including the commitment to educate all employee-owners about its finances. Armed with basic accounting knowledge, employees are more aware of the financial impact of their actions, which leads to better decisions. LO 1 External Users Illustration 1-2 Questions that external users ask USERS AND USES OF FINANCIAL INFORMATION LO 1 ACCOUNTING ACROSS THE ORGANIZATION Spinning the Career Wheel How will the study of accounting help you? A working knowledge of accounting is desirable for virtually every field of business. Some examples of how accounting is used in business careers include the following. General management: Managers of Ford Motors, Massachusetts General Hospital, California State University–Fullerton, a McDonald’s franchise, and a Trek bike shop all need to understand accounting data in order to make wise business decisions. . | Introduction to Financial Statements 1 Kimmel ● Weygandt Survey of Accounting, First Edition CHAPTER OUTLINE Identify the forms of business organization and the uses of accounting information. 1 Explain the three principal types of business activity. 2 LEARNING OBJECTIVES Describe the four financial statements and how they are prepared. 3 LEARNING OBJECTIVE LO 1 FORMS OF BUSINESS ORGANIZATION Identify the forms of business organization and the uses of accounting information. 1 USERS AND USES OF FINANCIAL INFORMATION Internal Users Illustration 1-1 Questions that internal users ask LO 1 ACCOUNTING ACROSS THE ORGANIZATION Owning a Piece of the Bar The original Clif Bar® energy bar was created in 1990 after six months of experimentation by Gary Erickson and his mother in her kitchen. Today, the company has almost 300 employees and is considered one of the leading Landor’s Breakaway Brands®. One of Clif Bar & Company’s proudest moments was the creation of an employee stock ownership plan
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