OVERVIEW, LEARNING OBJECTIVES, CLASS PREPARATION

CHAPTER 17-Using Accounting Information

OVERVIEW
This chapter introduces accounting as a system of transforming raw data into financial information. We begin this chapter by looking at the recent problems in the accounting industry and attempts to improve financial reporting. Next, we discuss the importance of audited financial statements and generally accepted accounting practices. We then look at the primary users of accounting information and follow with a discussion of careers in accounting. Following explanations of the accounting equation, we examine the five major elements of the accounting process: analyzing source documents, recording transactions, posting, preparing trial balances, and preparing financial statements and closing the books. Using examples from a fictitious corporation, we discuss at length the balance sheet and its relationship to the accounting equation. In a separate section on the income statement, we cover revenues, cost of goods sold, operating expenses, and net income. We also examine the cash flow statement. We conclude the chapter by examining the function of annual reports and explaining how accounting data can be used for comparisons and the computation and significance of profitability ratios, short-term financial ratios, activity ratios, and the debt-to-equity ratio.

Format for Discussion Questions: Typed, (Question in bold) followed by double space and then your answer.
Assignments may be submitted in class paper copy, email, or via Blackboard.
Late assgnments will recieve a maximum of 50% credit

CLASS PREPARATION

READ Chapter 17, Video Case 17.1 Be prepared to discuss the questions at the end of the case
READ Running a Business Part VI Information Systems and Accounting at Finalgle a Bagel. Be prepared to discuss the questions at the end of the case in class
Answer Discussion Questions 1,2,4,6

CROSSWORD CLUES

CROSSWORD BOARD