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What is Accounting?

What is Accounting?. Accounting is an information system that. Measures business activities Processes information and Communicates financial information. Why study accounting?. Accounting. Potential job market Accounting in daily live Owning your own business Accounting as a profession.

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What is Accounting?

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  1. What is Accounting?

  2. Accounting is an information system that..... • Measures business activities • Processes information and • Communicates financial information

  3. Why study accounting?

  4. Accounting • Potential job market • Accounting in daily live • Owning your own business • Accounting as a profession

  5. What is a Business? How do we use accounting in business?

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

  7. What are different types of businesses?

  8. Four main categories of businesses • Service business • Merchandising business • Manufacturing or producing business • Non-profit organization

  9. The Service Business • Sells a service to the public. For example, • Hairdresser • Massage therapist • Flight attendants • Professional organizers • Interior designers

  10. The Merchandising Business • Buys goods and resells them at a higher price for profit. For example, • Clothing stores • Music stores • Car dealerships • Supermarket

  11. The Manufacturing or Producing Business • Buys raw materials, converts them into a new product, and sells these products to earn a profit. For example, • Construction companies (M) • Garment factories (M) • Steel plants (M) • Farm (P) • Fishing (P)

  12. The Non Profit Organisation • Carries on activities to meet social needs and not for a financial profit. For example, • Red Cross • Salvation Army • MADD

  13. What are different types of business ownership?

  14. Different types of business ownership • Sole proprietorship • Partnership • Limited company

  15. Sole Proprietorship • A business owned entirely by one person. For example • Sally’s hair salon • Manni’s cupcakes

  16. Partnership • A form of business in which more than one person shares in the ownership and operation of a business. For example, • S Singh and Associates • Dr Smith and Associates

  17. Corporation • A form of business that is owned by shareholders and has limited liability. For example • Sears • Bell • GM

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