Accounting 27th edition

Pdf Book Name: Accounting 27th edition
Author: Carl Warren, James M. Reeve, Jonathan Duchac
Publisher: Cengage Learning
ISBN-10, 13: 9781337272094,1337272094
Year: 2017
Pages: 1440 pages
Language: English
File size: 56 MB
File format: PDF,EPUB

Accounting 27th edition Pdf Book Description:

The many enhancements to this edition of Accounting are the direct result of one-on-one interviews, surveys, reviews, and focus groups with instructors at institutions across the country. We would like to take this opportunity to thank those who helped us better understand the challenges of the principles of accounting course and provided valuable feedback on our content and digital assets. A business1 is an organization in which basic resources (inputs), such as materials and labor, are assembled and processed to provide goods or services (outputs) to customers. Businesses come in all sizes, from a local coffee house to Starbucks, which sells over $19 billion of coffee and related products each year. The objective of most businesses is to earn a profit. Profit is the difference between the amounts received from customers for goods or services and the amounts paid for the inputs used to provide the goods or services. This text focuses on businesses operating to earn a profit. However, many of the same concepts and principles also apply to not-for-profit organizations such as hospitals, churches, and government agencies. The role of accounting in business is to provide information for managers to use in operating the business. In addition, accounting provides information to other users in assessing the economic performance and condition of the business. Thus, accounting can be defined as an information system that provides reports to users about the economic activities and condition of a business. You could think of accounting as the “language of business.” This is because accounting is the means by which businesses’ financial information is communicated to users. Managerial Accounting Internal users of accounting information include managers and employees. These users are directly involved in managing and operating the business. The area of accounting that provides internal users with information is called managerial accounting or management accounting.

The objective of managerial accounting is to provide relevant and timely information for managers’ and employees’ decision-making needs. Oftentimes, such information is sensitive and is not distributed outside the business. Examples of sensitive information might include information about customers, prices, and plans to expand the business. Managerial accountants employed by a business are employed in private accounting. Financial Accounting External users of accounting information include investors, creditors, customers, and the government. These users are not directly involved in managing and operating the business. The area of accounting that provides external users with information is called financial accounting. The objective of financial accounting is to provide relevant and timely information for the decision-making needs of users outside the business. For example, financial reports on the operations and condition of the business are useful for banks and other creditors in deciding whether to lend money to the business. General-purpose financial statements are one type of financial accounting report that is distributed to external users. The term general-purpose refers to the wide range of decision-making needs that these reports are designed to serve. Later in this chapter, general-purpose financial statements are described and illustrated