FDNACCT - Unit 1 - Intro to Accounting

Accounting is an information and measurement system that identifies, records, and communicates relevant, reliable, and comparable information about an organization's business activities to aid in business decisions.

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Accounting, as a field of study, is an exact science.

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Accounting processes both financial and non-financial information for recording purposes.

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The main purpose of auditing financial statements is to detect fraud.

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Branch of accounting that provides internal financial reports for decision making

• Financial accounting

• Cost accounting

• Managerial accounting

• Forensic accounting

Check financial statements to see if they can rely on continued service or supply of goods

• Managers

• Lenders

• Mutual fund companies

• Customers

A business that converts raw materials to finished goods

• Service

• Merchandising

• Manufacturing

• Non-profit organization

A sole proprietor has unlimited liability.

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A corporation is a business that is legally separate and distinct from its owners.

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Father of Accounting