1. WHAT IS ACCOUNTING? Accounting is the identifying, recording and communication of financial events that affect a company

2. ACCOUNTING INFORMATION IS COMMUNICATED TO? External users Internal users

3. EXTERNAL USERS Creditors – Loan money Investors - Buy or sell ownership Government - Taxes

4. INTERNAL USERS Management – How are we doing and where are we going?

5. WHAT DO ACCOUNTANTS DO? Prepare reports Check reports Prepare budgets

6. TWO MOST COMMON TYPES OF REPORTS Financial Reports Tax Returns

7. FINANCIAL REPORTS INCLUDE Income Statement Retained Earnings Statement Balance Sheet Statement Cash Flow Statement

8. TAX RETURN REPORTS INCLUDE Income Tax Returns Payroll Tax Returns Sales Tax Returns Property Tax Returns

9. ROLE OF ACCOUNTANT IN PREPARING REPORTS The accountant just reports what happened. The users of the financial statements then decide what to do.

10. HOW DO ACCOUNTANTS PREPARE REPORTS? By following the rules to prepare reports promulgated by the Financial Accounting Standards Board. (FASB)