Accounting cyc1.

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Accounting provides financial information about a business or a nonprofit organization. Owners, managers, investors, and other interested parties need financial information in order to make decisions.... Because accounting is used to communicate financial information, it is often called the “language of business.” The Need for Financial Information Suppose a relative leaves you a substantial sum of money and you decide to carry out your lifelong dream of opening a small sportswear shop. You rent space in a local shopping center, purchase fixtures and equipment, purchase goods to sell, hire salespeople, and open the store to customers. Before long you realize that, to run your business successfully, you need financial information about the business. You probably need information that provides answers to the following questions: <a onClick="window.open('/olcweb/cgi/pluginpop.cgi? it=jpg::::/sites/dl/premium/0077430506/student/brown_bull.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> How much cash does the business have? <a onClick="window.open('/olcweb/cgi/pluginpop.cgi? it=jpg::::/sites/dl/premium/0077430506/student/brown_bull.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> How much money do customer s owe the business ? <a onClick="window.open('/olcweb/cgi/pluginpop.cgi? it=jpg::::/sites/dl/premium/0077430506/student/brown_bull.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> What is the cost of the merchan dise sold? <a onClick="window.open('/olcweb/cgi/pluginpop.cgi? it=jpg::::/sites/dl/premium/0077430506/student/brown_bull.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> What is the change in sales volume? <a onClick="window.open('/olcweb/cgi/pluginpop.cgi? it=jpg::::/sites/dl/premium/0077430506/student/brown_bull.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> How much money is owed to suppliers ? <a onClick="window.open('/olcweb/cgi/pluginpop.cgi? it=jpg::::/sites/dl/premium/0077430506/student/brown_bull.jpg','popWin', 'width=NaN,height=NaN,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif"> (K)</a> What is the profit or loss? As your business grows, you will need even more financial information to evaluate the firm's performance and make decisions about the future. An efficient accounting system allows owners and managers to quickly obtain a wide range of useful information. The need for timely information is one reason that businesses have an accounting system directed by a professional staff. Accounting Defined >> 1. OBJECTIVE Define accounting. is the process by which financial information about a business is recorded, classified, summarized, interpreted, and communicated to owners, managers, and other interested parties. An accounting .................................................................continued................................................................................. [Show More]

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