Chapter 14 Content

Description:

This chapter focuses on financial information and accounting.

Purpose:

To operate effectively, businesses must have a way to track income, expenses, assets, and liabilities in an organized manner. Financial information is also essential for decision-making. Managers prepare financial reports using accounting, a set of procedures and guidelines for companies to follow when preparing financial reports. Unless you understand basic accounting concepts, you will not be able to “speak” the standard financial language of businesses.

What to gain:

After reading this chapter, you should be able to answer these questions:

1. Why are financial reports and accounting information important, and who uses them?
2. What are the differences between public and private accountants, and how has federal legislation affected their work?
3. What are the six steps in the accounting cycle?
4. In what terms does the balance sheet describe the financial condition of an organization?
5. How does the income statement report a firm’s profitability?
6. Why is the statement of cash flows an important source of information?
7. How can ratio analysis be used to identify a firm’s financial strengths and weaknesses?
8. What major trends affect the accounting industry today?

Upcoming activities:

Weekly discussion board, assignment, and Chapter 14 quiz.

How to access:

Read Chapter 14 - Using Financial Information and Accounting.