1. ACCOUNTING: The Language of Business
Lecture 5
(review Ch. 1 & 3)

2. ACCOUNTING INFORMATION USERS
External
Lenders of Money;
Suppliers of Goods;
Shareholders;
Governement
Internal
Board of Directors;
Department Managers;

3. The Three Major Financial Statements

4. Annual Report Financial Statements;
Statement of management’s responsibility for preparation of the financial statements;
Discussion and analysis by management of recent economic events;
Footnotes that explain in more detail many elements of the financial statements; 
Independent auditor's report;
Other corporate information;

5. The Balance Sheet Equation

6. The Organizational Context of Accounting
Sole Proprietorship
Capital Owner’s Name
Partnership
Capital, Partner’s Name;
Capital, Partner’s Name:
Corportion
Stockholders’ Equity
Common Stock
Additional Paid-in Capital

7. Opportunities for Accountants

8. The Recording Process (1)

9. The Recording Process (2)

10. Posting (1)

11. Posting (2)

12. Retained Earnings