ACCT 2000

identify, record, and communicate the economic events of an organization to interested users

the bookkeeping function.

• Internal users Management Human Resourses Finance Marketing
• External users IRS Investors Labor unions Creditors SEC Customers

identification- economic events (transactions)

Recording- record classifiy and summarize

Communication- prepare accounting reports

Standards of conduct by which one’s actions are judged as right or wrong, honest or dishonest, fair or not fair, are Ethics.

Effective financial reporting depends on sound ethical behavior.

• The accounting profession has attempted to develop a set of standards that are generally accepted and universally practiced
• cost principle- dictates that companies record assets at their cost.

• include in the accounting records only transaction data that can be
• expressed

in terms of money.