Section outline

  • Photo of a financial advisor holding a portfolio

    Financial information is central to every organization. To operate effectively, businesses must have a way to track income, expenses, assets, and liabilities in an organized manner. Financial information is also essential for decision-making. Managers prepare financial reports using accounting, a set of procedures and guidelines for companies to follow when preparing financial reports. Unless you understand basic accounting concepts, you will not be able to “speak” the standard financial language of businesses. This module examines the role of accounting in business, how accounting contributes to a company’s overall success, the three primary financial statements, and careers in accounting. 



    Upon completion of this module, you will be able to:
    1. Illustrate why financial reports and accounting information are important, and identify who uses them.
    2. Contrast the differences between public and private accountants, and state how federal legislation has affected their work.
    3. Describe the six steps in the accounting cycle.
    4. Distinguish the terms that a balance sheet uses to describe the financial condition of an organization.
    5. Discuss how the income statement reports a firm’s profitability.
    6. Support how the statement of cash flows is an important source of information.
    7. Demonstrate how ratio analysis be used to identify a firm’s financial strengths and weaknesses.
    8. Identify major trends affecting the accounting industry today.

    The objectives of this module correspond with the following course outcome(s):
    1. Explain accounting and financial management including planning, budgeting, resource allocation, and sources of funding.
    2. Describe the ethical, regulatory, and social environments of business.

    To achieve these objectives:

    1. Read the Module 14 Introduction 
    2. Read and view the materials in the Module 14 Pressbooks book
    3. Complete the Module 14 quiz.
    4. Complete the Module 14 Ethics Activity
    5. Compete the Module 14 Critical Thinking Case Group Assignment

    Module Pressbooks Resources and Activities

    You will find the following resources and activities in this module at the Pressbooks website. Click on the links below to access or complete each item.

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