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1、FundamentalAccountingPrinciplesJohnJWildKenWShawBarbaraChiappettaWinstonKwokSundarVenkateshSolutionsManualProprietaryandConfidentialThisManualisthepropertyofTheMcGraw-HillCompanies,Inc.andprotectedbycopyrightlaws.ThisManualisprovidedonlytoauthorizedprofessorsan
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3、ymeans,electronicorotherwise,withoutthepriorwrittenpermissionofTheMcGraw-HillCompanies.SingaporeóBostonóBurrRidge,ILóDubuque,IAóMadison,WIóNewYorkSanFranciscoóSt.LouisóBangkokóKualaLumpuróLisbonóLondonóMadridMexicoCityóMilanóMontrealóNewDelhióSeoulóSydneyóTaipe
4、ióTorontoChapter01-AccountinginBusinessChapter1AccountinginBusinessQUESTIONS1.Thepurposeofaccountingistoprovidedecisionmakerswithrelevantandreliableinformationtohelpthemmakebetterdecisions.Examplesincludeinformationforpeoplemakinginvestments,loans,andbusinesspl
5、ans.2.Technologyreducesthetime,effort,andcostofrecordkeeping.Thereisstillademandforpeoplewhocandesignaccountingsystems,supervisetheiroperation,analyzecomplextransactions,andinterpretreports.Demandalsoexistsforpeoplewhocaneffectivelyusecomputerstoprepareandanaly
6、zeaccountingreports.Technologywillneversubstituteforqualifiedpeoplewithabilitiestoprepare,use,analyze,andinterpretaccountinginformation.3.Externalusersandtheirusesofaccountinginformationinclude:(a)lenders,tomeasuretheriskandreturnofloans;(b)shareholders,toasses
7、swhethertobuy,sell,orholdtheirshares;(c)directors,tooverseetheirinterestsintheorganization;(d)employeesandlaborunions,tojudgethefairnessofwagesandassessfutureemploymentopportunities;and(e)regulators,todeterminewhethertheorganizationiscomplyingwithregulations.Ot
8、herusersarevoters,legislators,governmentofficials,contributorstononprofits,suppliersandcustomers.4.Businessownersandmanagersuseaccountinginformationtohelpanswerquestionssuch
