Chapter 1
Accounting in Today’s New Economy
IN THIS CHAPTER
Appreciating how accounting is relevant to you
Grasping how all economic activity requires accounting
Understanding the accounting function’s primary roles
Watching an accounting department in action
Shaking hands with business financial statements
Realizing accounting is both an art form and science
There was a captive audience present when I (coauthor John) taught Accounting 101 because, then as well as now, all business school students have to take this course. In contrast, very few arts and science students elect the course, which is unfortunate. Accounting 101 teaches about business, including the nature of profit (which most people don’t fully understand) and the fundamentals of capitalism.
The course is a very good training ground for becoming financially literate. Accounting is the language of business, finance, investing, ...
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