Chapter

14.1. Accounting: More than Numbers*

From IntroductionToBusiness OP 8D04gAa

Concepts

1. Why is accounting important to businesses and the public?

   "Prior to 2001, accounting topics rarely made the news. That changed when Enron Corp.’s manipulation of accounting rules to improve its financial statements hit the front pages of newspapers. The comp

2. What does accounting do for an organization?

   "Accounting is the process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities. It results in reports that describe the financial condition of an organiza

3. Who uses internal and external financial reports?

   "The accounting system generates two types of financial reports: internal and external. Internal reports are used within the organization. As the term implies, managerial accounting provides financial

4. How are financial statements standardized and presented in annual reports?

   "To ensure accuracy and consistency in the way financial information is reported, accountants in the United States follow generally accepted accounting principles (GAAP) when preparing financial state