Introduction to Business - Accounting

Accounting

The Management Process & Control

• Control is the process of monitoring a firm’s performance to ensure that it is meeting its goals.
• Various ways of exercising control over firm.

1. Installing CCTVs in your firm premises
2. Having a floor manager in the factory to supervise workers’ productivity.

Accounting

An information system that does 2 things:
1) Record all the transactions of a business
2) Summarizing those records into a report

Accounting

• Recording transaction-book keeping
• Generate reports to assist in decision making
• Evaluating business performance
• Discourage employees stealing money from the business.

The Income Statement

• Reports of the revenue,expenses and profit of a business.
• The basic idea is the revenue minus the expenses paid, results in a profit or loss for the business.
• Revenue – Expenses = Profit/Loss

Class activity

We are told to do an accounting report in the class based on the information given.