Download Accounting (Accounting Carl S. Warren) by Carl S. Warren, James M. Reeve, Philip E. Fess PDF

By Carl S. Warren, James M. Reeve, Philip E. Fess

The main winning better schooling textual content of all time retains recovering. The authors adapt their confirmed method of accounting's evolving position in enterprise and use the coaching of monetary statements because the framework for knowing what accounting is all approximately. Accounting offers an effective starting place of accounting strategies with distinct good points to teach how clients can use accounting to appreciate enterprise.

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In order for the creditors to recover their investment, the business must generate enough cash to pay them back. In addition, creditors view the business as their customer and thus have a stake in the continued success of the business. Various governments have an interest in the economic performance of businesses. City, county, state, and federal governments collect taxes from businesses within their jurisdictions. The better a business does, the more taxes the government can collect. In addition, workers are taxed on their wages.

The managers are those individuals who the owners have authorized to operate the business. Managers are primarily evaluated on the economic performance of the business. The managers of poor-performing businesses are often fired by the owners. Thus, managers have an incentive to maximize the economic value of the 2The value chain is described and illustrated in most management textbooks. qxd 11/10/03 6:26 PM Page 7 Chapter 1 • Introduction to Accounting and Business The state of Alabama offered DaimlerChrysler millions of dollars in incentives to locate a Mercedes plant in Alabama.

In other words, proper ethical conduct implies that you not only consider what’s in your best interest, but also what’s in the best interests of others. Ethical conduct is good business. For example, an automobile manufacturer that fails to correct a safety defect to save costs may later lose sales due to lack of consumer confidence. Likewise, a business that pollutes the environment may find itself the target of lawsuits and customer boycotts. 3 Although an ethical framework is based on individual experiences and training, there are a number of sound principles that form the foundation for ethical behavior: 1.

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