ACCT 200 Ch 1 Notes

Topics: Balance sheet, Generally Accepted Accounting Principles, Income statement Pages: 4 (781 words) Published: April 29, 2014
Aug 30, 2013
Accounting 200
Chapter 1 Vocabulary

Business: An organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers.
Service Business: Provide services rather than product to customers
Ex. Delta Air Lines (Transportation)
Walt Disney Co. (Entertainment)
Merchandising Business: Sell products they purchase from other businesses.
Ex. Wal-Mart (General Merchandise)
Amazon (Internet Books, Music, Videos)
Manufacturing Business: Change basis inputs into products that are sold to customers.
Ex. Ford Motor Co. (Cars, Trucks, Vans)
Dell Inc. (Personal Computers)

Accounting: An information system that provides reports to users about the economic activities and condition of a business.
-The role of accounting in business is to provide information for managers to use in operating the business. Managerial or Management Accounting: Area of accounting that provides internal users with information.

-The objective of managerial accounting is to provide relevant and timely information for managers’ and employees’ decision-making needs. Private Accounting: Accountants employed by companies, government, and not-for-profit entities.

-External users of accounting information include investigators, creditors, customers, and the government. Financial Accounting: The area of accounting that provides external users with information.

-The objective of financial accounting is to provide relevant and timely information for the decision-making needs of users outside the business.

General-Purpose Financial Statements: One type of financial accounting report that is distributed to external users.

Ethics: Moral principals that guide the conduct of individuals. 1. Identify an ethical decision by using your personal ethical standards of honesty and fairness. 2. Identify the consequences of the decision and it’s effect on...
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