Accounting: The Key to Success C H A P T E R 1 © 2007 McGraw-Hill Ryerson Ltd. Electronic...

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Page 1: Accounting: The Key to Success C H A P T E R 1 © 2007 McGraw-Hill Ryerson Ltd. Electronic Presentations in Microsoft® PowerPoint®

Accounting: The Key to Success

C H A P T E R 1C H A P T E R 1

© 2007 McGraw-Hill Ryerson Ltd.

Electronic Presentations in Microsoft® PowerPoint®

Page 2: Accounting: The Key to Success C H A P T E R 1 © 2007 McGraw-Hill Ryerson Ltd. Electronic Presentations in Microsoft® PowerPoint®

1. Describe accounting and its goals and uses.

2. Describe forms of business organizations.

3. Identify users and uses of accounting.

4. Explain why ethics and social responsibility are crucial to accounting.

5. Identify opportunities in accounting and related fields.

Learning ObjectivesLearning Objectives

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Accounting is a process that involves collecting information, recording it, and then reporting it to various decision makers.

What is Accounting?What is Accounting?

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Sole Proprietorship Partnership Corporation

Forms of OrganizationForms of Organization

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One owner Separate entity for

accounting purposes Not a separate legal

entity from the owner Unlimited liability Limited life Owner taxed on

profits

Sole ProprietorshipsSole Proprietorships

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Two or more owners Separate entity for

accounting purposes Not a separate legal

entity from the owners Unlimited liability Limited life Owners taxed on

profits

PartnershipsPartnerships

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One or more owners Separate entity for

accounting purposes Separate legal entity

from the owner(s) Limited liability Unlimited life Corporation taxed on

profits

CorporationsCorporations

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Not-for-profit and government organizations

No identifiable owner Examples: schools,

charities, libraries, hospitals, police, shelters

Non-Business OrganizationsNon-Business Organizations

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Internal Owners Managers

External Bankers and other

creditors Investors and

potential investors Unions External auditors CRA

Users of Accounting InformationUsers of Accounting Information

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What are the manufacturing expenses per unit of product?

What is the most profitable mix of services?

How much do we have to sell to break even?

How much profit did we earn last month? Are we keeping our expenses under

control?

Questions asked by internal usersQuestions asked by internal users

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Can the company repay current loans? Is the purchaser able to pay for goods

purchased? Do revenues include only those for the

current period? Have all expenses been recorded? Is net income large enough to support a

request for increased pay?

Questions asked by external usersQuestions asked by external users

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One of the primary goals of accounting is to provide useful information for decision making.

In order for the information to be useful, it must be trusted.

Accountants must act in an ethical manner in order for the information they produce to be trusted.

Ethics in AccountingEthics in Accounting

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Ethical obligations of accountants: Maintain a high level of professional

competence. Treat sensitive information as confidential. Exercise personal integrity. Be objective in matters of financial

disclosure.

Ethics and Social ResponsibilityEthics and Social Responsibility

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Broad fields of accounting include: Financial accounting Managerial accounting Taxation Accounting-related fields

Accounting OpportunitiesAccounting Opportunities

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Accountants may work as: Private accountants Public accountants Government accountants

Accounting OpportunitiesAccounting Opportunities

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Professional certifications in Canada: Certified General Accountant (CGA) Certified Management Accountant (CMA) Chartered Accountant (CA)

Professional CertificationProfessional Certification

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End of ChapterEnd of Chapter

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Photograph CreditsPhotograph Credits

Slide Credit

5 SW Productions/Getty Images

6 Comstock/Picture Quest

7 Ryan Mc Vay /Getty Images

8 Dynamic Graphics / Jupiter Images

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Chapter McGraw-Hill Ryerson © 2013 McGraw-Hill Ryerson Limited Introduction To Corporate Finance 1 Prepared by Anne Inglis.

Chapter McGraw-Hill Ryerson © 2013 McGraw-Hill Ryerson Limited Introduction To Corporate Finance 1 Prepared by Anne Inglis.

Chapter McGraw-Hill Ryerson © 2007 McGraw-Hill Ryerson Limited Interest Rates and Bond Valuation Prepared by Anne Inglis, Ryerson University 7.

Chapter McGraw-Hill Ryerson © 2007 McGraw-Hill Ryerson Limited Interest Rates and Bond Valuation Prepared by Anne Inglis, Ryerson University 7.

Special Annuities Special Annuities1212 McGraw-Hill Ryerson© 12-1 Special Situations Chapter 12 McGraw-Hill Ryerson©

Special Annuities Special Annuities1212 McGraw-Hill Ryerson© 12-1 Special Situations Chapter 12 McGraw-Hill Ryerson©

© 2003 McGraw-Hill Ryerson Limited 9 9 Chapter The Time Value of Money McGraw-Hill Ryerson©2003 McGraw-Hill Ryerson Limited Prepared by: Terry Fegarty.

© 2003 McGraw-Hill Ryerson Limited 9 9 Chapter The Time Value of Money McGraw-Hill Ryerson©2003 McGraw-Hill Ryerson Limited Prepared by: Terry Fegarty.

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© 2003 McGraw-Hill Ryerson Limited 7 7 Chapter Current Asset Management McGraw-Hill Ryerson©2003 McGraw-Hill Ryerson Limited Prepared by: Terry Fegarty.

Chapter McGraw-Hill Ryerson Copyright © 2010 McGraw-Hill Ryerson Limited Introduction To Corporate Finance 1.

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Electronic Presentations in Microsoft ® PowerPoint ® Prepared by Brad MacDonald SIAST © 2003 McGraw-Hill Ryerson Limited.

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McGraw-Hill Ryerson Mathematics of Data Managementvaxxine.com/coconutpi/Fathom Tutorial MDM 2004-07-27.pdf · McGraw-Hill Ryerson Mathematics of Data Management ©2002 McGraw-Hill

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MCGRAW-HILL RYERSON ANNUAL REPORT 2004 - …€¦ ·  · 2011-08-22McGraw-Hill Ryerson Annual Report 2004 McGraw-Hill Ryerson Limited has a long and illustrious history. ... promotion

MCGRAW-HILL RYERSON ANNUAL REPORT 2004 - …€¦ ·  · 2011-08-22McGraw-Hill Ryerson Annual Report 2004 McGraw-Hill Ryerson Limited has a long and illustrious history. ... promotion

© 2003 McGraw-Hill Ryerson Limited 16 Chapter Long-Term Debt and Lease Financing Long-Term Debt and Lease Financing McGraw-Hill Ryerson©2003 McGraw-Hill.

© 2003 McGraw-Hill Ryerson Limited 16 Chapter Long-Term Debt and Lease Financing Long-Term Debt and Lease Financing McGraw-Hill Ryerson©2003 McGraw-Hill.

10-0 McGraw-Hill Ryerson © 2005 McGraw–Hill Ryerson Limited Chapter Outline 10.1Returns 10.2Holding-Period Returns 10.3Return Statistics 10.4Average Stock.

10-0 McGraw-Hill Ryerson © 2005 McGraw–Hill Ryerson Limited Chapter Outline 10.1Returns 10.2Holding-Period Returns 10.3Return Statistics 10.4Average Stock.

Chapter McGraw-Hill Ryerson © 2013 McGraw-Hill Ryerson Limited Project Analysis and Evaluation Prepared by Anne Inglis 11.

Chapter McGraw-Hill Ryerson © 2013 McGraw-Hill Ryerson Limited Project Analysis and Evaluation Prepared by Anne Inglis 11.

Chapter McGraw-Hill Ryerson © 2013 McGraw-Hill Ryerson Limited 6 Prepared by Anne Inglis Discounted Cash Flow Valuation.

Chapter McGraw-Hill Ryerson © 2013 McGraw-Hill Ryerson Limited 6 Prepared by Anne Inglis Discounted Cash Flow Valuation.

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© 2003 McGraw-Hill Ryerson Limited 5 5 Chapter Operating and Financial Leverage McGraw-Hill Ryerson©2003 McGraw-Hill Ryerson Limited Prepared by: Terry.

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