Topics Covered
- Nature of Business and Accounting.
- Business Activities.
- What is Accounting and its Role in Business?
- Financial Statements.
- Accounting Concepts.
- Financial Analysis: Rate of Return on Assets.
Objectives
At the end of this chapter you will successfully be able to:
- Describe the types and forms of businesses, how businesses make money, and business stakeholders.
- Describe the three business activities of financing, investing, and operating.
- Define accounting and describe its role in business.
- Describe and illustrate the basic financial statements and how they interrelate.
- Describe eight accounting concepts underlying financial reporting.
- Financial Analysis: Describe and illustrate how the rate of return on assets can be used to analyze and assess a company’s financial performance.