[...]... questions like these and many more We’ll discuss financial statements in detail later in the chapter For now, let’s turn our attention to the users of accounting information Decision Makers: The Users of Accounting Information 2 Define the users of financial information We can divide accounting into two fields financial accounting and managerial accounting Financial accounting provides information for external... external decision makers, such as outside investors and lenders Financial accounting provides data for outsiders Managerial accounting focuses on information for internal decision makers, such as the company’s managers Managerial accounting provides data for insiders Exhibit 1-1 illustrates the difference between financial accounting and managerial accounting Regardless of whether they are external or internal... new computer Businesses need accounting information to make similar decisions Accounting and the Business Environment EXHIBIT 1 1 1-1 3 Financial Accounting and Managerial Accounting Outside Investors: Should we invest in Greg’s Tunes? Is the business profitable? Investors use financial accounting information to measure profitability Greg’s Tunes: Greg Moore uses managerial accounting information to... is also available in MyAccountingLab End-of-Chapter Material Integrated with MyAccountingLab myaccountinglab.com Students need practice and repetition in order to successfully learn the fundamentals All of the end-ofchapter problems and exercises in Financial & Managerial Accounting can be assigned and graded through MyAccountingLab And learning goes one step further with MyAccountingLab’s algorithmic... etext to the exact section of the book that will provide help on the specific problems Financial & Managerial Accounting With its tried-and-true framework and respected author team, Horngren/Harrison/Oliver’s Financial & Managerial Accounting is the trusted choice for instructors and students of Introductory Accounting The third edition preserves the classic, solid foundation of the previous editions,... and accounting savvy We’ll also see how understanding financial statements—like the balance sheet shown on the previous page—is one of the first steps toward business success Accounting Vocabulary: The Language of Business 1 Define accounting vocabulary Key Takeaway Accounting is the language of business Financial statements report a company’s activities in monetary terms You’ve heard the term accounting, ... Objectives 1 Define accounting vocabulary 6 Apply accounting concepts and principles 2 Define the users of financial information 7 3 Describe the accounting profession and the organizations that govern it Describe the accounting equation, and define assets, liabilities, and equity 8 Identify the different types of business organizations Use the accounting equation to analyze transactions 9 Prepare financial. .. the basic concepts/assumptions underlying financial statements, we’ll cover the accounting equation Key Takeaway The accounting concepts are the underlying assumptions used when recording financial information for a business Think of the concepts like rules of a game You have to play by the rules The Accounting Equation The basic tool of accounting is the accounting equation It measures the resources... will aid students when they are trying to solve exercises and problems on their own, duplicating the classroom experience outside of class Gear art © ArtyFree | iStockphoto.com with Financial & Managerial Accounting and MyAccountingLab! Consistency and Repetition Throughout the Learning Process The concepts, materials, and practice problems are presented with clarity and consistency across all mediums—textbook,... bachelor’s degree in accounting was $48,334.1 A graduate with a master’s degree earns about 10% more to start, and CPAs earn another 10% Many accounting firms are organized as partnerships, and the partners are the owners It usually takes 10 to 15 years to rise to the rank of partner The partners of large accounting firms, such as Ernst & Young, earn from $150,000 to $500,000 per year In private accounting, . Data Horngren, Charles T. Financial & managerial accounting / Charles T. Horngren, Walter T. Harrison Jr., M. Suzanne Oliver.—3rd ed. p. cm. Rev. ed. of: Financial and managerial accounting. 2nd ed 978-0-13-249792-3 (pbk.) 1. Accounting. 2. Managerial accounting. I. Harrison, Walter T. II. Oliver, M. Suzanne. III. Title. IV. Title: Financial and managerial accounting. Credits and acknowledgments. end-of- chapter problems and exercises in Financial & Managerial Accounting can be assigned and graded through MyAccountingLab. And learning goes one step further with MyAccountingLab’s algorithmic versions