Introduction to the accounting function as the measurement and communication of business transactions. Topics include accounting as an information system, reporting of assets, liabilities and equities, determination of net income, the use of financial accounting data in decision making, and the influence of income tax on business decisions.
Accounting is introduced as a form of communication.
Early in the course, attention is focused on various individuals and groups and their need to make financial decisions. Financial statements, the output of an accounting system, are used to help these parties make informed decisions. Throughout the course attention is called to the limitations and weaknesses of financial statements as a form of communication. Class attendance is expected. Any material covered in class may appear on exams.