TAILIEUCHUNG - Introducing Financial Accounting

Similarly, even though a typical board meets more frequently (usually about six to eight times a year) than the audit committee, it has a variety of other issues on its agenda besides overseeing the financial reporting of the firm. The board is responsible for issues such as the hiring, compensation, and firing of the CEO and overseeing the firm’s overall business strategy, including its activity in the market for corporate control. So it is possible that even a well-functioning, competent, and independent board may fail to detect accounting problems in large firms. Accordingly, Sonda Chtourou, Jean Bedard, and Lucie Courteau find no significant relation between board independence and the. | A Look at This Chapter Accounting plays a crucial role in the information age. In this chapter we discuss the importance of accounting to different types of organizations and describe its many users and uses. We explain that ethics are crucial to accounting. We also explain business transactions and how they are reflected in financial statements. A Look Ahead Chapter 2 describes and analyzes business explain the analysis and recording of transactions the ledger and trial balance and the double-entry system. More generally Chapters 2 and 3 show via the accounting cycle how financial statements reflect business activities. Introducing Financial Accounting Chapter Learning Objectives Learning Objectives are classified as conceptual analytical or procedural. CAP I Conceptual Analytical Procedural C1 Explain the purpose and importance of accounting in the information age. p. 4 A1 Define and interpret the accounting equation and each of its P1 Identify and prepare basic financial statements and explain how they C2 Identify users and uses of accounting. p. 5 components. p. 12 interrelate. p. 17 A2 Identify opportunities in accounting and related fields. p. 6 C4 Explain why ethics are crucial to accounting. p. 8 Analyze business transactions using the accounting equation. p. 13 Compute and interpret return on assets. p. 20 C Explain generally accepted accounting principles and define and apply several key accounting principles. p. 9 A4 Appendix 1A Explain the relation between return and risk. p. 23 C6 Appendix 1B Identify and describe the three major activities of organizations. p. 24 LP1 Decision Feature A Decision Feature launches each chapter showing the relevance of accounting for a real entrepreneur. An Entrepreneurial Decision problem at the end of the assignments returns to this feature with a mini-case. Life Is Good BOSTON Bert and John Jacobs launched their T-shirt I company Life is good with nothing in our bank account and 78 in .

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