Don’t be too concerned with all the new and unfamiliar terms you see in the
first chapter of the book. Learning a new language takes time. Be patient before
too long you will be speaking the language of business accounting quite
In this textbook you will begin your study of accoumting. You will learn to
speak and understand accounting. The language of business. Without an
understanding of accounting, business investments taxes. And money management
will be like of foreign language to you in brief an understanding of accosting
facilitates the interpretation of financial information. Which allous, for
better economic decisions.
The major objective of this text are to provide you with a basic understanding
of the language of accounting and with the ability to interpret and use
financial information prepared using accounting techniques and procedures. With
the knowledge you obtain from this exposure to accounting. You will be able to
read the financial statements of companies such as Microsoft. Understand the
information that is being conveyed. And use accounting information to make good
business decisions. Also through discussion of the business environment in which
accounting is used, you will in crease your understanding of general business
concepts such as corporations, leases, annuities leverage, derivatives the
financial kind not the calculus kind and so forth.
You will become convinced that accounting is not bean counting. Time after time
you will see that accountants mush exercise judgment about how to best summarize
and report the results of business transactions. As a result you will gain a
respect for the complexity of accounting. And obtain a healthy skepticism about
the precision of any financial reports you see.