Max Golden owns a large tutoring business called Apple Teaching. After one year of business, he is unsure if he has made a profit. His accountant, Leslie Gille, tells Max that the place to check for profit is the company's financial statements, which she prepares from Apple Teaching's accounting records. The good news for Max is that his nascent company is profitable, so he will continue to grow the business.
Accounting is the information system that measures business activities. Such activities include purchasing inventory and then selling that inventory to customers, or providing a service. Information is then processed into reports, and the results are communicated to decision makers. Decision makers are often business owners such as Max Golden or potential investors. It is very important that accounting reports are prepared with care and according to the Generally Accepted Accounting Principles (GAAP). This resource provides instruction for users to:
Define primary accounting concepts and principles
Use accounting terminology in a business context
Explain components of the accounting equation
Use the accounting equation to record business transactions
Describe the differences between IFRS and GAAP on financial statement reporting
