In Alberta, you cannot take a picture of a man with a wooden leg. Why not?

1. In Alberta, you cannot take a picture of a man with a wooden leg. Why not?

2. Accounting Principles 30S An Introduction

3. Why Study Accounting? • Accounting on the Job • Finding employment in a business is easier if you have a background in accounting • Accounting in Daily Life • Accounting will help you to better handle your personal business affairs such as preparing a personal budget, keeping personal financial records, and preparing your income tax return

4. Accounting for Your Own Business • If a business is to be successful, the owner must be able to make sound management decisions based on good financial records • Accounting as a Profession • Chartered Accountant (CA) • Certified General Accountant (CGA) • Certified Management Accountant (CMA)

5. What is Accounting? • The purpose of accounting is to provide financial information for decision making • Is the business earning enough profit? • How much does the business owe? • Is this a good investment opportunity? • Every accounting system must: • Record day-to-day financial activities of the business (e.g. all money coming in and out) • Summarize and report information in financial statements for analysis and decision making

6. What is a Business? • A business involves the manufacture and/or sale of goods or services in order to earn profit

7. Four Types of Business • Service Business • Sells a service to the public (does not sell a product) • e.g. Hair Salon • Merchandise Business • Buys goods and resells them at a higher price for profit • e.g. Supermarket

8. Manufacturing Business • The manufacturing business buys raw materials, converts them into a new product, and sells these products to earn a profit • e.g. Paper Mill • Non-Profit Organization • Carries on activities to meet social needs and not for a financial profit • e.g. Cancer Society

9. Accounting Cycle