The accounting process
1.You are employed as an accountant for Innovative Computing. Your company is in the process of signing a large contract with an electronics components supplier. You have a friend who works for the electronics components supplier, and you are aware of the company having trouble paying bills.
Explain why you should or should not report this to your employer before the purchase.
2. Since Chapter 1 is titled “Accounting: The Language of Business,” let’s discuss what accounting is and why is it considered the ‘language of business’? Who are the stakeholders (individuals or organizations) that are interested in financial information of a company, and what do they use this information for?
3 In Chapter 2 we will learn how to analyze and record a transaction and the basics of the financial statements. The accounting process fundamentally starts with a business transaction, which may also be referred to as an economic event.
How does the accountant determine whether the transaction should be recorded and how it should be recorded?