tailieunhanh - Accounting: The Key to Success

The level of insurance risk may vary during the period of the insurance contract. For example, in a pure endowment policy the insurance risk reduces as the value of the investment increases. Also, in a deferred annuity contract there may be no insurance risk during the savings phase but there is significant insurance risk during the annuity phase. In assessing the significance of insurance risk at the inception of the contract the effect of discounting on the expected cash flows may be significant. The low present value of expected cash flows should not by itself be a reason to conclude that the insurance risk is not significant at. | CHAPTER 1 Accounting The Key to Success Accounting Leads the Way Wynne Powell is an accounting professional. He is also president and CEO of London Drugs a business that has millions of dollars in revenues annually and a staff of approximately 6 000. It s a highly stressful position he admits but Wynne finds it stimulating. The excitement is in making things happen taking money and making it grow providing a return to the owners. It s like a chess game somebody makes a move and you carefully develop and adjust your strategy positioning yourself for the win. It s fun How do you make sure you win in business According to Wynne it s pretty basic you need a thorough understanding of accounting figures that s what allows a company to fail or flourish. The management team must fully understand how financial information is created it s only then that they can use it to their advantage. In Wynne s opinion businesses begin to fail because of inappropriate or late financial figures. Advances in technology have ensured that accounting information can be available on a real-time basis. Technology has also triggered the evolution of a new breed of accountant whose focus has expanded to every aspect of the business in every corner of the world. Accounting knowledge is the key says Wynne Powell. It is the language of business and as such is fundamental to your success in the business world. Accounting leads the way. Learning Objectives LO1 Describe accounting and its v- goals and uses. LO2 Describe forms of business organizations. LO3 Identify users and uses of V- accounting. LO5 Describe how technology is changing accounting. accounting and related fields. APPENDIX 1A An asterisk identifies appendix material. Describe the codes of ethics and professional conduct for accountants. LO4 Explain why ethics and social v- responsibility are crucial to accounting. A Chapter Preview introduces the importance and relevance of the material and also links these materials to the opening .