Accounting reports business transactions that have already occurred. Accountants act as historians as they identify and record business financial economic activities in various journals and ledgers. The results, in the form of financial statements, are then reported to management for their use.
Preparing, understanding, analyzing, and communicating financial information to interested parties is the heart of financial accounting. It is essential that you understand the mechanics of preparing and analyzing these financial statements and value their usefulness in making business decisions. It may be helpful to think of accounting as the language of business.
After completing this week, you should be able to:
The primary source for course reading material each week is Principles of Accounting and located at https://www.principlesofaccounting.com/. This source is in webpage format and includes videos. The Open Stax text is supplemental reference material. Additional reference materials are also provided in the learning resources.