Prepared By: Dr. H. M. Mosarof Hossain Professor Department of Finance University of Dhaka mosarof@du.ac.bd
Chapter 1 : Accounting in Business
Organizations and Society Business organization: i. Corporation ii. Sole proprietorship iii. Partnership
Common activities in business, government and
nonprofit organizations: i. Finance ii. Human resources iii. Research and development iv. Production v. Marketing vi. Executive management
Accounting and its role in organizations
i. Accounting provides important information to people for
making rational investment, credit and other decisions. ii. It provides relevant information to investors, lenders, managers, suppliers, customers and employees.
Using accounting to serve internal needs
i. Finance cash flow information ii. Human resources payroll information iii. Research and development cost report iv. Production production reports and internal controls v. Marketing sales reports and costs reports vi. Executive management financial statements, budgets and performance reports
Using accounting to serve external needs
i. Owners companys performance and financial
strength ii. Lenders/creditors financial strength and profit position iii. Voters, legislators and officials receipts and expenditures (in case of govt.)
Why study accounting?
i. Accounting as a future career ii. It avoids misunderstaing and misniterpretation of information Difference between bookkeeping and accounting: Accountig and computers:
Types of accounting and accountants
Accounting: i. Financial accounting ii. Managerial accounting iii. Cost accounting iv. Tax accounting Accountants: I . Private accountants ii. Public accounts iii. Government accountants
The importance of ethics in accounting
The meaning of ethics: Ethics in business: Ethics in accounting: