Introduction to Accounting is Fun!

• Define Accounting

– The process of analyzing, classifying, recording, summarizing, and interpreting business transactions in financial or monetary terms; sometimes mistakenly called bookkeeping

• Define: Business Transactions

– A business transaction is an event that has a direct effect on the operation of an economic unit, is expressed in terms of money, and is recorded

• Purpose of Accounting

– To provide useful information to people who make business decisions

– Who makes business decisions?

• Users of Accounting Information:

– Owners/Investors

– Managers

– Creditors

– Government Agencies