Page 427 - Introduction to Business

CHAPTER 11 Accounting for Decision Making 401

Internal Revenue Service, the Comptroller General’s Office, the Central Intelligence
Agency, or the Federal Bureau of Investigation. State governments and city govern-
ments need accountants to keep track of funds and how they are spent. Not-for-
profit organizations such as the Red Cross, the United Way, and the March of Dimes
need accountants to keep track of contributions received and how they are spent.
Accountants perform a variety of tasks, such as preparing financial statements
and recording business transactions, analyzing costs and efficiency gains from new
technologies, developing strategies for mergers and acquisitions, creating and using
information systems to track financial performance, developing tax strategies, and
helping manage health care. Accountants keep track of the sales revenues coming
into the firm. They maintain records of property, equipment, inventories, receivables,
payroll, shares of stock, production costs, overhead, and profit. Consequently,
accountants get the big picture; they learn how the business functions. Accountants
work with people in all areas of the firm, from marketing to finance to production.
Accounting is a people-oriented job. The accounting field offers exciting and chal-
lenging work that is constantly evolving. Accountants learn about all aspects of a
business; consequently, many CEOs and CFOs have accounting as their background.
Many accountants start their careers in public accounting and then move on to
jobs in industry or the government or not-for-profit sector. The skills acquired in
one field of work are generally transferable to other fields.
Accounting jobs are expected to increase in future years. The increased demand
for accountants is partly due to the increasing complexity of corporate transactions
and to the growth in the government sector.

Ethics in Business

How Do You Measure Success?

A popular story recounts a meeting Samuel Insull had died virtually penniless after
that took place at the Edgewater Beach spending some time as a fugitive from justice.
Hotel in Chicago in 1923. Attending this meeting were Howard Hopson was insane.
nine of the richest men in the world at that time: Arthur Cutten had died overseas, broke.
Charles Schwab, president of the world’s largest Richard Whitney had spent time in Sing-Sing prison.
independent steel company Albert Fall was released from prison so that he
Samuel Insull, president of the world’s largest could die at home.
utility company Leon Fraizer, Jessie Livermore, and Ivar Kreuger
Howard Hopson, president of the world’s largest had each died by suicide.
gas firm Measured by wealth and power, these men
Arthur Cutten, the world’s greatest wheat speculator achieved success, at least temporarily. Making a lot of
Richard Whitney, president of the New York Stock money may be an acceptable goal, but money most
Exchange assuredly does not guarantee a truly successful life.
Albert Fall, member of the president’s Cabinet Many people consider fame and fortune when
Leon Frazier, president of the Bank of International they measure success. In reality, a quality life is
Settlements measured by strength of character and personal
Jessie Livermore, the world’s greatest speculator in integrity, not by fame and fortune. In his testimony at
the stock market the congressional hearing on accounting and busi-
Ivar Kreuger, head of the company with the most ness ethics in July 2002, Truett Cathy, founder of
widely distributed securities in the world Chik-Fil-A, quoted Solomon: “A good name is more
Twenty-five years later, desirable than great riches; to be esteemed is better
than silver or gold.” How do you measure success?
Charles Schwab had died in bankruptcy, having
Source: From K. T. Smith and L. M. Smith, 2003. Business and
lived on borrowed money for five years before his
Accounting Ethics, Copyright © 2003. Used by permission of Dr. K. T.
death. Smith and Dr. L. M. Smith.
Copyright 2010 Cengage Learning, Inc. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part.