Introduction to financial accounting.

Abstract

Accoun􀆟ng involves a process of collec􀆟ng, recording, and repor􀆟ng a business’s economic ac- 􀆟vi􀆟es to users. It is o􀅌en called the language of business because it uses a unique vocabulary to communicate informa􀆟on to decision makers. To understand accoun􀆟ng, we first look at the basic forms of business organiza􀆟ons. The concepts and principles that provide the founda􀆟on for financial accoun􀆟ng are then discussed. With an emphasis on the corporate form of business organiza􀆟on, we will examine how we communicate to users of financial informa􀆟on using financial statements.