Chapter 1

Seeing the Big Picture of Financial Accounting

In This Chapter

arrow Figuring out why financial accounting matters

arrow Meeting the financial accounting stakeholders

arrow Introducing key financial accounting characteristics

arrow Accepting ethical responsibilities

I assume that you have a very good reason for purchasing this book; most people don’t buy a title like Financial Accounting For Dummies on a whim in the bookstore. Most likely, you’re taking your first financial accounting class and want to be sure you pass it, but perhaps you’re a business owner wanting to get a better handle on financial statement preparation. Whatever your motivation, this chapter is your jumping board into the pool of financial accounting.

I explain what financial accounting is and why it’s so important to many different individuals and businesses. I spell out the various users of financial accounting data and explain why they need that data. Finally, I briefly introduce four all-important characteristics of financial accounting: relevance, reliability, comparability, and consistency. Whether you’re a financial ...

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